Canadian Crypto Firms Set Annual Limit For Most Altcoins, But Excludes ETH, LTC & BCH
- The crypto exchange noted that people living in British Columbia, Alberta, Manitoba, or Quebec are not subject to the set limit.
- The move by Canadian regulators to impose limits on crypto investors has outraged the global community including Ethereum major developer, Vitalik Buterin.
- With most complaints centered around how the Canadian government is picking the winner in the crypto market.
Canadian crypto trading platforms, led by Newton and BitBuy digital asset exchanges, have set an annual limit for altcoin investors at CAD 30,000. However, the deal excludes Litecoin (LTC), Bitcoin Cash (BCH), Ethereum (ETH), and Bitcoin (BTC).
Reportedly, the limits have been put in place by the Ontario Securities Commission (OSC), and the Canadian Securities Administrators (CSA).
According to a blog post by Newton, these changes are meant to protect crypto investors. Additionally, the changes will make sure investors are aware of the risk associated with investing in crypto assets.
The crypto exchange noted that people living in British Columbia, Alberta, Manitoba, or Quebec are not subject to the set limit. However, people living in New Brunswick, Newfoundland, Nova, Scotia, Nunavut, Northwest Territories, Ontario, Prince Edward Island, Saskatchewan, and Yukon are subject to the new law limiting crypto purchases per year.
“You buy $20,000 of Solana (SOL), a restricted cryptocurrency. You’ve now used $20,000 of your $30,000 annual limit. If you want to purchase more crypto, you are limited to buying a maximum of $10,000. You then sell $10,000 of SOL. Now you’ve increased your net buy limit to $20,000,” Newton noted.
Crypto Community React to the Canadian New Purchase Limit
The move by Canadian regulators to impose limits on crypto investors has outraged the global community including Ethereum major developer, Vitalik Buterin. With most complaints centered around how the Canadian government is picking the winner in the crypto market.
“Glad to see Ethereum people pushing against regulations that privilege ETH over other legitimate cryptocurrencies,” Buterin noted.
However, Buterin further argues that he opposes the banning of Proof-of-Work, only a few days before the long-awaited Merge event. With the Merge transitioning the Ethereum network to Proof-of-Stake, it only increases the lift in the Eth ecosystem.
Remember. Some crypto exchanges including Justin Sun-backed Poloniex have announced the support of Eth hard forks that will emerge after the September event.
Crypto exchange BitBuy also tabled its set limit. According to one of its blog posts, retail investors have a limit of CAD 30,000 in net purchases in 12 months. Additionally, eligible investors have a limit of CAD 100,000 in net purchases in 12 months. However, accredited investors have no limit whatsoever in any digital asset purchase.
Side Notes
Canadian crypto investors are likely to feel left out as other nations do not have any set limit for their investors. The crypto market has been described as very green for most investors at the moment when prices are down. Moreover, institutional investors led by publicly traded companies have poured in more money in the past year than before.
According to a recent report, BlackRock, Alphabet, and Morgan Stanley are the public companies with the highest stake in blockchain technology.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
