Canadian cryptocurrency platforms Newton and Bitbuy are imposing a CA$30,000 annual net buy limit on altcoins in some provinces, though the limit will not apply to unrestricted cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash:
Toronto-based exchange Newton says the limit will apply to what are being called restricted cryptocurrencies, or altcoins. A net buy limit tallies up all crypto purchases minus sells (at average cost) over a rolling 12-month period, according to Bitbuy.
Nine Provinces Affected
Provinces where the buy limits will be imposed are New Brunswick, Newfoundland, Nova Scotia, Nunavut, Northwest Territories, Ontario, Prince Edward Island, Saskatchewan, and Yukon. Users can still resell restricted cryptocurrencies to reduce their balance towards the limit, which resets after one year.
The limits, put in place by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators, are calculated based on the amount in Canadian dollars altcoins are worth at the time of trade and are thereby unaffected by increases or decreases in the value of one or more digital assets.
The decision has rightly caused some confusion of frustration among Canadian residents who took to Twitter to express their concern:
On the other hand, Ethereum co-founder Vitalik Buterin is understandably happy about the decision to privilege major coins such as Ethereum:
Canada’s Shifting Crypto Landscape
Canada’s crypto scene has caused much confusion and frustration this year after Prime Minister Justin Trudeau took unprecedented steps in February by invoking the 1988 Emergencies Act, which enables the government to freeze bank accounts without going through the courts, in an attempt to deny funding to the Canadian “Freedom Convoy”, thus essentially banning cryptocurrencies.
The Freedom Convoy was established through a loose affiliation of truckers and citizens who launched protests over vaccine mandates for truckers crossing the US/Canada border. Many have slated the country’s decision as undemocratic and authoritarian.
