Canadian Exchanges Impose CAD 30K Annual Limit on Altcoin Purchases

Canada-based cryptocurrency exchanges Bitbuy and Newton have imposed new rules on their respective platforms, restricting users based in Ontario to an annual limit of CAD 30,000 on the purchase of “restricted coins.” 

Bitbuy and Newton Impose CAD 30K Annual Limit

Bitbuy, the first crypto trading platform to be regulated as a marketplace in Canada, and the Toronto-based exchange Newton have imposed new rules limiting its users to altcoin purchases of CAD 30,000 in a year.

On Newton, the new CAD 30,000 “net buy limit” applies to all altcoins, excluding Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC). The limit resets every 12 months from the first purchase of restricted coins.

However, on Bitbuy, customers are classified as Retail Investors, Eligible Investors, or Sophisticated Investors. Retail investors are limited to CAD 30,000 purchases, eligible investors CAD 100,000, while there are no purchase limits for sophisticated investors.

Customer Protection

In the newly announced regulatory changes, Newton revealed that the rules were put in place to “protect crypto investors” and ensure that “investors are aware of the risks associated with investing in crypto assets.”

Newton announced the changes to its rules as it secured regulatory licenses with the Ontario Securities Commission (OSC). The exchange is also working to register securities with regulatory authorities in other provinces and territories of Canada.

On the Flipside

  • Crypto.com has signed a pre-registration to become the first global crypto exchange authorized to conduct its business across all jurisdictions of Canada.

Why You Should Care

The new purchase limits are put in place to protect customers as the government tightens regulations on the crypto industry.

Read about Canada’s crypto regulations in:
Bank of Canada Official Calls for Faster Crypto Regulation

The OSC has fined exchanges. Read in:
Canada’s OSC to Fine Bybit & KuCoin

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).