Bitcoin: New Restrictions Cap Yearly Crypto Purchases in Canada

The customer’s ability to make net purchases may be restricted in certain cases. The cap limit does not apply to 4 major cryptocurrencies. In order to comply with rules, Canadian cryptocurrency exchanges have implemented procedures to restrict yearly purchases of crypto assets to CAD 30,000 (USD 23,250), with the exception of (only) four major currencies. Canadian crypto investors will still be able to buy uncapped Bitcoin, Ethereum, Litecoin and Bitcoin Cash, but they are likely to buy fewer altcoins due to the limit. In a statement explaining the new restrictions to its users, Canadian cryptocurrency exchange Newton said, “over the past several months,” the exchange has been “quietly” working on its registration with the Ontario Securities Commission and the securities regulatory authorities in other Canadian provinces and territories. The exchange added: “You may already be familiar with these changes as they impact all Canadian crypto trading platforms, not just Newton.”  Major Boost for 4 Currencies The customer’s ability to make net purchases may be restricted in certain cases. When a user tries to make a transaction, they will be able to see these restrictions. Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) are the only cryptocurrencies that are not restricted by the restrictions. The platform states that the restrictions do not apply to customers in the provinces of British Columbia, Alberta, Manitoba, or Quebec. This implies that those living in the provinces of New Brunswick, Newfoundland and Nova Scotia, Nunavut, the Northwest Territories, Ontario, Prince Edward Island, Saskatchewan, and the Yukon will be subject to the yearly net purchase limit. Bitbuy, a Canadian cryptocurrency exchange, also made cap announcements. Bitbuy exchange stated: “The limits are defined as “net purchase limits”, meaning it tallies up all of your crypto purchases minus your sells (at average cost), over a rolling 12 month period (last 365 days).” Recommended For You: How Much Risk Will the Upcoming Ethereum Merge?