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.
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.
We’re excited to finally announce our registration with the Ontario Securities Commission (OSC) and the securities regulatory authorities in all Canadian provinces, Yukon, and Northwest Territories. pic.twitter.com/8zx8UJy2DE
—Newton (@newton_crypto) August 16, 2022
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.
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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
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Sources: Newton, CSA
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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