Canadian crypto exchanges are beginning to enforce annual “net buy limits” on most cryptocurrencies

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(Kitco News) – Several cryptocurrency exchanges in Canada have begun rolling out measures aimed at capping the annual purchase limit on certain crypto assets to CAD 30,000, a move being taken to “protect crypto investors” .

The exchanges in question, Newton and Bitbuy, are both based in Toronto and have taken steps to restrict purchases of certain tokens to comply with orders from the Ontario Securities Commission (OSC) and securities regulators in other provincial areas of Canada.

According to a post by Newton, Ontario-based crypto traders are now subject to a “net buy limit” on the majority of crypto tokens, with the exception of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). ).

Newton clarified that Canadian residents living in BC, Alberta, Manitoba or Quebec would not be subject to these restrictions.

Unfortunately, as noted in a Bitbuy post, residents of the following provinces are subject to the new purchase limits: New Brunswick, Newfoundland, Nova Scotia, Nunavut, Northwest Territories, Ontario, Prince Edward Island, Saskatchewan, and Yukon.

Bitbuy announced these changes to its users back in May and provided a more detailed explanation of how the limits would be enforced.

“The limits are defined as ‘net buy limits,’ meaning they add up all your crypto purchases minus your sales (at average cost) over a rolling 12-month period (last 365 days),” Bitbuy said.

According to a table provided by Bitbuy, the CAD$30,000 buy limits apply to people who qualify as “retail investors”, while “eligible investors” have a CAD$100,000 buy limit. Those who qualify as “Accredited Investors” are not subject to any purchase restrictions.

The crypto community is striking back

The broader cryptocurrency community has reacted with criticism to the imposition of buy limits, including those who have accused the OSC of effectively picking winners and losers by restricting access to certain tokens.

The development even drew a reaction from Ethereum co-creator Vitalik Buterin, who is “glad to see Ethereum folks cracking down on regulations that privilege ETH over other legitimate cryptocurrencies.”

Other social media users were quick to offer Canadian residents solutions for the new borders. A popular suggestion is that data subjects circumvent the rules by buying large amounts of unrestricted tokens and transferring them to a decentralized exchange to exchange for the token of their choice.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.

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