Newton and Bitbuy, both situated in Canadian , have set an annual buy limit on certain altcoins for Ontario crypto customers. The CAD 30k cap is intended to protect crypto consumers in the face of increased crypto legislation.
Newton Exchange Restrictions Apply to Ontario Users
Newton, a Toronto-based trading provider, has announced modifications to its platform. The firm recently registered with Ontario’s securities commission as well as other Canadian agencies.
These improvements, according to Newton’s research, are intended to protect cryptocurrency users. It would also ensure that investors are aware of the hazards associated with crypto asset investments.
According to recent modifications, Ontario traders utilizing the Newton exchange and other Canadian exchange platforms cannot buy crypto valued more than CAD 30k in a year. Meanwhile, not all coins are affected.
The new restriction does not apply to cryptocurrencies such as BTC, ETH, and LTC. Furthermore, if a user buys and sells a restricted token, the price of the sell will be deducted from the $30K limit.
Furthermore, this limit is reset yearly from the first time a user purchases limited coins. Meanwhile, Newton Exchange recently became an Ontario restricted dealer.
This means that the exchange is now subject to the Ontario Securities Commission’s authority and rules. The region’s crypto companies are governed by the regulator.
The Newton Exchange has launched a trading survey for traders.
The trade questionnaire is another consumer protection measure that the company has included. This questionnaire is used by the platform to gather data from traders about their understanding of crypto investment, experience, risk tolerance, and financial status.
Before they may deal on the exchange, users must fill out the form. Furthermore, if a trader’s crypto portfolio suffers losses that they are unhappy with, the firm will notify them. This limit would have been specified in the trading questionnaire.
In addition, Bitbuy, another well-known exchange, related groups buy limits for the beginning of 2022. This limitation, according to the company, applies to users in Nova Scotia, Nunavut, Yukon, Labrador, Newfoundland, and Manitoba.
Bitbuy also requires customers to fill out a survey in order to establish which investor category they belong to. There are three categories, each with a set buy limit.
Retail Investor ($30,000 CAD), Eligible Investor ($100,000 CAD), and Experienced Investor are among them (no limit). The Ontario region is home to more than 40% of Canada’s population.
Each territory and province in Canada, according to Newton, has its own security regulator. The Canadian Securities Administrators are a group of regulators (CSA).