Ontario Crypto Exchanges Have $30,000 CAD Annual Limit
BITmarkets Team
Nov 22, 2022
Bitbuy and Newton, both situated in Canada, are imposing a 30,000 Canadian dollar yearly buy restriction for restricted currencies for their Ontario users in order to protect consumers in the face of tightening legislation. In an announcement post they said that these changes were accepted to protect cryptocurrency investors and to make them aware of the risks that are involved with investing in such assets.
The new regulations will subject Ontario-based crypto traders on Newton and other Canadian crypto platforms to an annual 30,000 CAD net buy limit on all cryptocurrency coins barring Bitcoin, Bitcoin Cash, Ether, and Litecoin. Newton went on to say that if a trader purchased and then sold a restricted coin, the sell amount would be deducted from the limit. The restriction is adjusted every 12 months, beginning with the first purchase of limited coins. The buy limits come after the crypto platform revealed that it has formally registered as a restricted dealer in the province of Ontario, which means they are now subject to the Ontario Securities Commission's regulations (OSC).
Other changes aimed at protecting consumers include a trading questionnaire, in which the exchange is required to collect information from users about their previous experience and knowledge of crypto investing, financial situation, and risk tolerance — all of which must be completed before the account can be funded and traded on the platform. The crypto exchange will also notify traders if their portfolio experiences a loss level that they mentioned in the form that they are not comfortable with.
Sources:
https://cointelegraph.com/news/ontario-crypto-exchanges-impose-30k-annual-limit-on-altcoin-buys
https://rajacreator.com/ontario-crypto-exchanges-impose-30k-annual-limit-on-altcoin-buys/
