Canadian cryptocurrency platforms Newton and Bitbuy are enforcing an annual buy limit of CA$30,000 on most altcoins for users in Ontario.
According to Toronto-based Newton, the limit will apply to what it has termed restricted cryptocurrencies, according to the company’s FAQ.
Certain conditions apply
However, users in applicable provinces will be limited to purchasing CA$30,000 of any restricted crypto per year. These provinces include New Brunswick, Newfoundland, Nova Scotia, Nunavut, Northwest Territories, Ontario, Prince Edward Island, Saskatchewan, and Yukon.
Users can then resell restricted crypto to reduce their balance towards the limit, which then resets after one year.
Limits are calculated based on the amount in Canadian dollars at the time of trade, and so are unaffected by increases or decreases in the value of one or more crypto assets.
These limits have been put in place by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA).
Crypto in Canada
Cryptocurrencies have been gaining steam in Canada, through adoption, registration, and legislation. According to a recent report released by the Bank of Canada, the number of Bitcoin holders doubled from 5% in 2020 to 13% in 2021.
On average, the amount of Bitcoin held was $500, with most holders using it for speculation due to its high volatility, which precludes its use as a form of payment.
Amid the enthusiasm, the Canadian Securities Administrators (CSA) is now requiring that all cryptocurrency trading platforms agree to certain conditions before they can operate in Canada.
After the OSC published the first pre-registration requirements for crypto asset trading platforms, Crypto.com signed such a pre-registration undertaking with the OSC, making it the first cryptocurrency exchange to operate under this regulation.
This was just one among a string of recent approvals around the world for the Singapore-based cryptocurrency platform.