- The regulations do not apply to residents in British Columbia, Alberta, Manitoba, or Quebec.
- Net buy limits affect the net amount of crypto investors can buy to 30,000 CAD.
- These limits have been imposed by the OSC and the CSA.
The Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) have imposed “net buy limits” on the purchase of cryptocurrencies in Canada. These new set limits will reset annually.
Under the new regulations, Ontario-based crypto traders on Newton and other Canadian crypto platforms will be subject to an annual 30,000 CAD “net buy limit” on all cryptocurrency coins, excluding Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC).
This means that when investors buy restricted cryptocurrencies, they use some of their limits. Selling restricted cryptocurrencies will bring back the spent limit.
The new buy limits are intended to protect crypto investors better and make them mindful of the high risks associated with crypto assets, added a spokesperson from one of the crypto exchanges.
The list of provinces under the regulatory list includes:
- New Brunswick
- Newfoundland
- Nova Scotia
- Nunavut
- Northwest Territories
- Ontario
- Prince Edward Island
- Saskatchewan
- Yukon
Crypto exchange apps like Newton have incorporated a feature called “net buy limit calculator.” The calculator will track the limit for its users. Newton will notify them on their screens if they are approaching their limit.
Ethereum co-founder, Vitalik Buterin, tweeted being elated seeing Ethereum push against the regulations and coming out as being more reliable than other legitimate cryptocurrencies.
Glad to see Ethereum people pushing against regulations that privilege ETH over other legitimate cryptocurrencies.
(I have not dug into the details of what specifically is going on and to what extent it’s a gov thing vs a compliance decision of one business, but either way…) https://t.co/NDYPh5rqsk
— vitalik.eth (@VitalikButerin) August 17, 2022
Buterin, who retweeted his old post, irked a lot of people in the community, including the chief technical officer of Ripple, David Schwartz. The CTO reiterated Ripple’s earlier claims of ETH and BTC being secure; and compared miners in the ecosystem similar to shareholders of eBay.
Schwartz said:
I do think it’s perfectly fair to analogize miners in PoW systems to stockholders in companies. Just as eBay’s stockholders earn from the residual friction between buyers and sellers that eBay does not remove, so do miners in ETH and BTC.
Schwartz later concluded the tweet with a question to Buterin, asking him whether the security debate should be settled by the government or the market.
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