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HomeLaw & PoliticsCanadian crypto exchanges Bitbuy and Newton impose $30k buy-limit cap on altcoin

Canadian crypto exchanges Bitbuy and Newton impose $30k buy-limit cap on altcoin

Bitbuy and Newton, with offices in Canada, have imposed a 30K Canadian dollar annual “buy limit” for “limited currencies” for their Ontario clients as a way to “safeguard users” in the midst of tighter regulations.

The Newton, a crypto exchange located in Toronto, revealed significant modifications following preparation to file with the Ontario Securities Commission and security authorities in other Canadian provinces and territories.

Under the novel modifications, crypto investors of Ontario on Newton and other Canadian crypto exchanges would be allowed to trade Ethereum (ETH), Bitcoin Cash (BCH), Bitcoin (BTC), and Litecoin (LTC).

Newton went on to say that whenever a dealer purchases a limited currency and afterwards sells it, the value of the transaction will be removed from the restriction. Starting with the first purchase of restricted coins, the restriction is changed every 12 months.

Ontario Securities Commission (OSC) limitations

The buying limit indicates that the crypto platform is now subject to Ontario Securities Commission (OSC) restrictions since it stated on August 16 that it had formally filed as a “restricted trader” in Ontario.

Other consumer protection provisions include a “trading survey,” which mandates exchanges to collect data from users about their previous investment experience and expertise, financial status, and risk tolerance.

Bitbuy needs investors to take a survey like Newton

Bitbuy, similar to Newton, needs investors to take a survey to identify if they are retail, accredited, or skilled investors. Retail investors, on the other hand, have a $30,000 buy restriction, while qualified investors get a $100,000 buy limit and accredited investors have no buy limitations.

Newton has provided traders with a preview of what to anticipate when the new regulations go into force.

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