Canada-based crypto exchanges Bitbuy and Newton are implementing a $30,000 (CAD) annual “buy limit” for “restricted coins” for his or her customers primarily based in Ontario to be able to “protect consumers” amid tightened rules.

Newton, a Toronto-based crypto trade introduced the brand new modifications come after working on getting registered with the Ontario Securities Commission and the securities regulatory authorities in different provinces and territories of Canada, noting in an Aug. 16 publish:

“These changes are to protect crypto investors, like yourself, and to make sure investors are aware of the risks associated with investing in crypto assets.”

Under the brand new modifications, Ontario-based crypto merchants on Newton and different Canadian crypto platforms might be topic to an annual $30,000 (CAD) “net buy limit” on all cryptocurrency cash excluding Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).

Newton additional clarified that if a dealer purchased after which bought a restricted coin, the promote quantity could be subtracted from the limit. The limit resets each 12 months from the primary buy of restricted cash.

The purchase limits come because the crypto platform introduced on Wednesday that they’ve formally registered as a “restricted dealer” within the province of Ontario, which meant that they’re now topic to the rules set out by the Ontario Securities Commission (OSC).

We’re excited to lastly announce our registration with the Ontario Securities Commission (OSC) and the securities regulatory authorities in all Canadian provinces, Yukon, and Northwest Territories. pic.twitter.com/8zx8UJy2DE

— Newton (@newton_crypto) August 16, 2022

Other modifications geared toward client safety embody a “trading questionnaire,” wherein the trade is required to gather info from customers about their previous expertise and data of crypto investing, monetary scenario, and threat tolerance — which is required to be accomplished to proceed funding the account and buying and selling on the platform.

The crypto trade may also ship merchants a notification if the dealer’s portfolio receives a loss stage that they indicated within the questionnaire that they’re not snug with.

Canadian crypto trade Bitbuy additionally confirmed comparable buy limits earlier within the 12 months, noting that comparable restrictions additionally apply to customers within the provinces of Manitoba, New Brunswick, Newfoundland, and Labrador, Nova Scotia, Prince Edward Island, Northwest Territories, Nunavut, and Yukon.

Similar to Newton, Bitbuy requires merchants to fill out a questionnaire to find out whether or not the investor qualifies as a Retail Investor, Eligible Investor or Sophisticated Investor. However, whereas Retail Investors stay topic to the $30,000 purchase limit, Eligible Investors’ purchase limit is upped to $100,000 and no buy limit exists for Accredited Investors.  

Newton supplied merchants with a snapshot of what they need to count on to see when the brand new guidelines take impact.

Source: Newton

The Ontario province alone accounts for almost 40% of the Canadian inhabitants, with Toronto being the foremost metropolitan hub.

Newton famous that every province and territory of Canada has its personal securities regulatory authority, which mixed, makes up the Canadian Securities Administrators (CSA).

Related: Cleaning up crypto: How a lot enforcement is an excessive amount of?

Consumer safety is not the one focus of Canadian regulators both. In Apr. 2021, the Canadian federal authorities introduced that they’d bear a legislative assessment on the monetary sector, with a specific focus on enhancing the soundness and safety of digital currencies, and establishing a central financial institution digital forex (CBDC).

Newton, who dubs themselves as “Canada’s trust low cost crypto trading platform” had been based in 2018 and are at the moment some of the standard exchanges in Canada, having surpassed 100,000 customers in Feb. 2021.

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