Newton and Bitbuy, two of Canada’s largest digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset exchanges, imposed new limits on cryptocurrency purchases.
- New limits in Canada for the purchase of certain cryptocurrencies.
- Two exchanges announced an annual purchase cap of close refers to the closing price; similar to the same term used in stock trading. to USD $23,000.
- Bitcoin and three other cryptocurrencies are excluded from the rule.
At least two Canadian-based cryptocurrency exchanges are imposing new limits on the purchase of certain digital assets in order to comply with regulations.
The exchanges Canadians Bitbuy y Newton two of the country’s largest, informed their customers about the new annual limit of CAD $30,000 (about USD $23,260) for the purchase of certain cryptocurrencies, according to a report from Cointelegraph . The rules apply to residents of nine provinces in the country, and exclude cryptocurrencies like Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. y Ethereum a decentralized open-source blockchain with smart contracts functionality. .
Newton based in Toronto, reported on the rules in a entry on your website indicating that these come after working to register with the Ontario Securities Commission (OSC) and other Canadian regulatory authorities. The company wrote:
Depending on your province of residence, net purchase limits may be imposed on your account. These limits exclude the following currencies: Bitcoin , Ethereum , Litecoin y Bitcoin Cash. If you live in BC, Alberta, Manitoba or Quebec, these limits do not apply.
Annual purchase limit for altcoins
Under the new policy, cryptocurrency traders will be subject to a ” net purchase limit “30,000 CAD annual fee for ” all other currencies combined “who are not on the list. It applies to inhabitants of the provinces of New Brunswick, Newfoundland, Nova Scotia, Nunavut, Northwest Territories, Ontario, Prince Edward Island, Saskatchewan and Yukon.
The company added that the changes seek to “ protecting crypto-investors “and make sure that “ are aware of the associated risks “to digital assets. He also assured that the rules “affect all Canadian cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. trading platforms, not just Newton. “.
As you remember Cointelegraph the limits were disclosed after the Newton to announce its official registration to the CSO. Other news media reported that this is a national regulatory policy and not an isolated decision by certain exchanges.
In a separate statement, the platform a place to buy, sell and store cryptocurrency Bitbuy there was also announced a few months ago similar limits for cryptocurrency trading. According to a post on that exchange’s website, traders based in the nine aforementioned provinces have an annual limit of CAD $30,000 for the purchase of altcoins except for BTC, ETH, BCH and LTC.
“ The limits are defined as “net purchase limits”, which means that you add up all your cryptocurrency purchases minus your sales (at average cost), over a period of 12 consecutive months (last 365 days). “, he wrote Bitbuy together with an illustrative table.
Similar a Newton In addition, retail investors will have a margin for buying cryptocurrencies for a period of 12 months; however, if they sell, that amount will be subtracted from the ceiling. At Bitbuy The limit is extended to CAD $100,000 (USD $77,525) per annum for eligible investors and accredited investors are excluded from the measure.
New regulations in Canada?
The regulations mean that many Canadian traders will see limits on buying popular cryptocurrencies in terms of market an area or arena, online or offline, in which commercial dealings are conducted. capitalization such as Solana, Dogecoin y Avalanche to name a few. Undoubtedly, the move could reduce the appetite of the country’s investors for a wide range of alternative currencies.
Cabe señalar, como hace Cointelegraph that only the province of Ontario represents almost 40% of the Canadian population, with Toronto being the main metropolitan centre.
It is not known why Bitcoin and three other cryptocurrencies are excluded from the cap, but the development has already triggered numerous reactions in the crypto space. Among them, the co-founder of Ethereum Vitalik Buterin rejected the move. “ I’m glad to see Ethereum people pushing back against regulations that privilege ETH over other legitimate cryptocurrencies “, he commented in a tweet .
Glad to see Ethereum people pushing against regulations that privilege ETH over other legitimate cryptocurrencies.
(I have not dug into the details of what specifically is going on and to what extent it’s a gov thing vs a compliance decision of one business, but either way…) https://t.co/NDYPh5rqsk
– vitalik.eth (@VitalikButerin) August 17, 2022
Canadian regulators have been taking a strict approach to cryptocurrency regulation in order to ensure consumer protection. A few weeks ago, the CSO imposed actions against the exchanges KuCoin y Bybit for failure to comply with relevant regulations and registrations. The authority prohibited the former from continuing to offer operations in Ontario and fined the latter $1.9 million with the possibility of continuing to offer services.
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Article by Hannah Estefania Perez / DiarioBitcoin
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