Authorities impose $30,000 purchase limits on altcoins

According to the new terms and conditions of use of the Newton cryptocurrency exchange platform, Canada limits investments to $30,000 per year. Although it does not concern all assets and all provinces of the country, this news raises questions about the freedom to dispose of its finances.

https://cryptoast.fr/cryptomoines-canada-autorites-impose-limites-achats-altcoins/

In Canada, the law limits investment in cryptocurrencies

Depending on the country where we are, we sometimes complain about the cryptocurrency regulationbut to Canada, laws sometimes take the form of restrictions. Indeed, according to the new general conditions of use of Newton, a local exchange, investors have a limit on all their investments of 30,000 Canadian dollars per year.

However, this measure has some subtleties. For example, the following assets are not affected by these limits :

  • Bitcoin (BTC);
  • Ethereum (ETH);
  • Litecoin (LTC);
  • Bitcoin Cash (BCH).

Similarly, all the provinces of the country are not housed in the same boat. So the ones below are not affected :

  • Alberta;
  • British Columbia ;
  • Manitoba;
  • Quebec.

Newton users must complete a questionnaire aimed at judge their knowledge in cryptocurrencies. In case of sufficient knowledge, they will have access to the platform, and this limit of 30,000 dollars will be reset with each anniversary date of answer to the questionnaire.

Note also that the “latent consumption” of this limit is variable. That is to say that if a user has for example purchased 10,000 dollars of SOL, he will logically have 20,000 dollars of “credit” left. But if he resells $5,000, that credit will be readjusted to $25,000. You also have to understand that it’s not $30,000 per altcoin, but indeed on all the assetsexcept those mentioned above.

👉 To go further – Keep full possession of your cryptocurrencies by storing them on a hardware wallet

The French unicorn of crypto wallets

A complete crypto experience, from buying to securing

Exchange compliance

These measures actually meet the guidelines of the Ontario Securities Commission (OSC), as well as the Canadian Securities Administrators (CSA).

In order to remain in compliance to continue operating on Canadian soil, regulators also require that trading platforms make a pre-registration commitment. This allows cryptocurrency exchanges to demonstrate their willingness to comply to the rules in force in Canada. Crypto.com has already complied with these injunctions.

Although many investors will not really be penalized by these restrictions, it still raises questions about the freedom to dispose of one’s finances. Indeed, this is an additional argument for turning to self-care.

👉 Also in the news – Unpaid fines? South Korea plans to seize cryptocurrencies from offenders

Investing in real estate on the blockchain

Only $50 to start

toaster icon

Sources: Newton, CSA

Newsletter 🍞

Receive a summary of crypto news every Monday by email 👌

What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.

Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

Leave a Comment