Bitbuy and Newton, two crypto exchanges based in Canada, have introduced annual buy limits for some cryptocurrencies in order to “protect crypto investors” so that customers are “aware of the risks associated with investing in crypto assets.” While the restrictions are not applicable to popular crypto coins, including the likes of Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), it does help promote a word of caution on the behalf of crypto platforms amidst an ongoing global crypto meltdown that has resulted in the loss of investors’ wealth amounting in billions.
Earlier this week, Newton took to Twitter to announce that it has registered with the Ontario Securities Commission (OSC) as well as the securities regulatory authorities in all Canadian provinces, Yukon, and Northwest Territories. It added that the “registration is intended to help protect crypto investors.”
It added in a detailed explainer that customers in British Columbia, Alberta, Manitoba, and Quebec won’t face such limits. Additionally, the limit also excludes coins such as BTC, ETH, LTC, and Bitcoin Cash (BCH).
On the other hand, Bitbuy said that the annual limits are applicable on residents of Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Northwest Territories, Nunavut, and Yukon.
Just like Newton, Bitbuy also said that the annual limits are only applicable to coins other than BTC, ETH, LTC, and BCH.
The net purchase limit will be reset every 12 months, both platforms clarified.
As per a report by Bloomberg, under new regulations set by the Canadian financial regulator, banks and insurers will have to limit their exposure to crypto assets to a small proportion of their capital.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.