Altcoin purchases in Canada are capped at CAD $30,000.

Altcoin purchases in Canada are capped at CAD $30,000.

Ontario residents can only purchase a certain number of altcoins per year from Canadian cryptocurrency exchanges Newton and Bitbuy. The cap, set at CAD $30,000., is meant to safeguard crypto users in the face of strict crypto regulation.

The Newton Exchange has imposed a restriction on its users in Ontario.

The Toronto-based exchange firm Newton has just released an update to its system. Ontario’s securities regulator, as well as regulators in other parts of Canada, have recently accepted the company’s registration.

Newton claims in his report that these adjustments are necessary for the security of crypto users. It would guarantee that buyers are aware of the dangers associated with crypto asset purchases.

Recent changes limit Canadians residing in the province of Ontario to purchasing no more than CAD $30,000 worth of cryptocurrency in a 12-month period via the Newton exchange or any other Canadian exchange platform. In the meantime, not all currency is affected by this.

The new rule does not apply to Bitcoin, Ethereum, or Litecoin. Furthermore, the exchange mentioned that the amount of a user’s sell would be subtracted from the $30K cap if the user bought and sold a restricted token.

This limit is also reset every year on the anniversary of the first time a user purchases restricted coins. Meanwhile, Newton exchange has joined the ranks of Ontario’s restricted dealers.

The Ontario Securities Commission now has authority over the exchange and must enforce its rules. Cryptocurrency businesses operating within a given jurisdiction are subject to the authority’s oversight.

The Trader Questionnaire Is Now Available On Newton Exchange

When it comes to customer safety, the company also introduced a trading questionnaire. This survey is used by the exchange to learn more about its users, including their level of crypto investment expertise, trading history, and comfort with financial risk.

In order to begin trading on the exchange, users must first fill out the form. In addition, the company will alert investors via email if they experience losses in their cryptocurrency holdings that are unacceptable to them. The trading questionnaire would have included a statement to this effect.

Additionally, another well-known exchange, Bitbuy, announced identical purchase restrictions at the beginning of 2022. In a statement, the company said that residents of Nova Scotia, Nunavut, the Yukon, Labrador, Newfoundland, and Manitoba are subject to the aforementioned restriction.

Users of Bitbuy must also complete a short survey to help the company classify them as either a retail customer or an institutional investor. For each of the three classes, the maximum quantity that can be purchased varies.

Three categories are distinguished by their minimum required investments: Retail Investor ($30,000 CAD), Eligible Investor ($100,000 CAD), and Sophisticated Investor ($1,000,000 CAD) (no limit). Over forty percent of Canada’s population lives in Ontario.

Newton claims that across Canada, each province and territory has its own security regulator. The Canadian Securities Administrators are the collective name for the country’s regulatory bodies (CSA).

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.