Canadian Exchanges Impose Limit Of CAD 30K On Altcoin Buy
Canadian-based crypto firms Newton and Bitbuy have imposed an annual buy limit on certain altcoins for Ontario crypto users. The limit, which is CAD 30k, aims to protect crypto users amid intense crypto regulation.
Newton Exchange Impose Restriction On Ontario Users
Recently, a Toronto-based exchange firm, Newton, announced new changes on its platform. The firm recently registered with Ontario’s securities regulator and other regulators in other regions of Canada.
According to Newton’s report, these changes are to safeguard crypto users. It would also ensure that investors know the risks of crypto asset investments.
As per the recent changes, Ontario traders using Newton exchange and other exchange platforms in Canada can not buy crypto worth more than CAD 30k in a year. Meanwhile, this does not affect all coins.
Cryptocurrencies such as BTC, ETH, and LTC are excluded from the new restriction. Furthermore, the exchange added that if a user buys and sells a restricted token, the amount of the sell would be removed from the $30K limit.
Additionally, this limit resets yearly from the first time a user buys restricted coins. Meanwhile, Newton exchange recently became a restricted dealer in Ontario.
This means the exchange is now under the jurisdiction and regulations of the Ontario Securities Commission. The regulator governs the activities of crypto firms in the region.
Newton Exchange Introduces Trading Questionnaire For Traders
Another feature the firm rolled out for consumer protection is the trading questionnaire. The platform uses this questionnaire to collect information from traders about their knowledge of crypto investment, experience, risk tolerance, and financial situation.
Users have to complete the form before they can trade on the exchange. In addition, the firm will send a notification to traders if their crypto portfolio records losses that they are not satisfied with. They would have indicated this limit in the trading questionnaire.
Furthermore, Bitbuy, another famous exchange, announced similar buy limits at the start of 2022. The firm said this restriction applies to Nova Scotia, Nunavut, Yukon, Labrador, Newfoundland, and Manitoba users.
Bitbuy also requires users to fill out a questionnaire to determine which investor category they fall under. There are three categories with different buy limits for each.
They include Retail Investor ($30,000 CAD), Eligible Investor ($100,000 CAD) and Sophisticated Investor (no limit). The Ontario region accounts for over 40% of the population in Canada.
According to Newton, each territory and province in Canada has its security regulator. The regulators combined make the Canadian Securities Administrators (CSA).
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