The rapid development of the crypto ecosystem is frightening regulators. As a result, many of them are looking for solutions to monitor the sector and protect consumers. In this momentum, Canada imposes new rules for crypto investment that could not please everyone…
Canadian stock exchanges at work in the crypto sector
Cryptos have gained unparalleled notoriety in a few years. When we go back a little, only a few people were receptive to digital assets. But today, we find all generations there. Faced with the growing development of this sector, the Canadian stock exchanges Newton and BitBuy have decided to impose a purchase limit.
The speed with which cryptos are gaining ground is pushing regulators to strengthen strategies to keep them under control. As a result, cryptocurrency purchases are limited to 30,000 Canadian dollars per year. How does it work? Well, some tokens are “restricted”. So you use your limit every time you make a purchase.
For example, if you buy $15,000 worth of SOIL, your purchase limit is $10,000. Therefore, if you want to take possession of other restricted coins with a value greater than this amount, you will have to part with other tokens. However, the limit put in place by the Ontario Securities Commission (OSC) is only valid for one year. The latter will therefore be reset the following year.
Bitcoin (BTC) and Ethereum (ETH) excluded from the restriction
Fortunately for cryptocurrency enthusiasts, not all digital assets face this penalty. Indeed, some cryptos, including bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) have no limits. As a result, investors will be able to continue their operations quietly. However, this limit only applies to retail investors.
In addition, unlike accredited investors who have no limits, the amount is higher for eligible investors. If these restrictions annoy investors, Newton has announced wednesday that he had registered as a restricted seller in the province of Ontario. As a result, he is obliged to comply with the rules established by the (OSC).
Canada is working hard to protect crypto investors. Indeed, the Newton and BitBuy exchanges have decided to establish annual purchase limits on certain tokens. Negotiators will now have a financial profile allowing them to assign a category: eligible, accredited or retail investor.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. Crypto community manager at the core, I am interested in everything related directly or indirectly to the blockchain and its derivatives. In order to share my experience and make known a field that I am passionate about, there is nothing better than writing informative and casual articles at the same time.