Canadian Exchanges Add $30k Buy Limit for All Cryptos Other than BTC and ETH
Canadian cryptocurrency exchanges Newton and Bitbuy said they are imposing new buy limits for “restricted coins” for their Ontario-based users to protect consumers amid stricter regulations. With the new regulatory changes, Canadian crypto traders based in Ontario are now subject to an annual 30,000 CAD ($23,284) “net buy limit” on all crypto assets except Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Newton Becomes a “restricted dealer” in Ontario
Newton, Bitbuy, and other Canadian crypto exchanges announced they are implementing a new net buy limit of 30,000 CAD for their Ontario-based users to improve consumer protection. The new rule applies to “restricted coins” and other cryptocurrencies besides BTC, ETH, LTC, and BCH.
The move comes as Toronto-based crypto exchange Newton announced new changes after filing to register with the Ontario Securities Commission (OSC) and the securities regulator in other Canadian territories. The new regulatory changes affect all Canada-based crypto exchanges, including Newton.
“These changes are to protect crypto investors, like yourself, and to make sure investors are aware of the risks associated with investing in crypto assets.”– Newton
Newton announced Wednesday it has officially registered as a restricted dealer in Ontario, a move that makes the crypto exchange subject to regulations imposed by the OSC. Apart from net buy limits, other regulatory changes include a trading questionnaire aimed at collecting users’ past experiences with crypto investing, and portfolio loss notifications that users will receive from Newton if their portfolio reaches the loss level they’ve deemed as comfortable in the questionnaire.
Newton’s peer Bitbuy also enforced similar buy limits earlier this year, with the new restrictions applying to several Canadian provinces including Manitoba, Yukon, New Brunswick, Nova Scotia, and a few more.
Join our Telegram group and never miss a breaking digital asset story.
Canada to Regulate Broader Financial Sector and Issue a CBDC
The new Ontario-focused crypto regulations come more than a year after the Canadian government announced plans to run a legislative review of the financial sector in the country. The authorities said they would particularly focus on enhancing the stability and security of digital assets and issuing a central bank digital currency (CBDC).
Earlier this month, Australia’s central bank said it is collaborating with the Digital Finance Cooperative Research Centre (DFCRC) on a program exploring use cases for a CBDC. The program aims to establish “a limited-scale CBDC pilot that will operate in a ring-fenced environment for a period of time and is intended to involve a pilot CBDC that is a real claim on the Reserve Bank.”
The U.S. authorities have also been active in their efforts to improve crypto regulations. Several U.S. senators recently proposed a new bill that would give the Commodity Futures Trading Commission (CFTC) significant power to regulate top cryptocurrencies.
What do you think about the new buy limits imposed by Canadian crypto exchanges? Let us know in the comments below.