Canada Restricts Crypto, Here’s How The New Rules Affect You

Nine provinces in Canada have decided to limit the amount of crypto you can buy in a year. The provinces have set an annual limit of $30,000 as the maximum amount of crypto that can be brought. However, there are four notable exceptions for cryptocurrencies under this rule. 

Bitcoin, Ethereum, Litecoin, and Bitcoin Cash are exempted from this regulation. As a result, those four tokens will not be counted in your annual limit.

Why Canada Is Restricting Crypto

The nine provinces have formed the regulation to protect consumers from the volatility of the crypto market. The nine provinces that will enforce this regulation are:

• Ontario
• Newfoundland
• New Brunswick
• Nova Scotia
• Nunavut
• Northwest Territories
• Prince Edward Island
• Saskatchewan
• Yukon

The regulation will not affect the Alberta, British Columbia, Quebec, and Manitoba provinces. The limit set by the provinces is $30,000. However, the limit will reset after every 12 months. The rule also gives certain exemptions based upon the type of investors. Moreover, certain types of investors, based on their income and net worth, can buy a higher amount of crypto.

How The Crypto Leaders React

David Hoffman, the founder of Bankless, expressed his frustration and surprise at Canada’s move. Furthermore, Hoffman also revealed that this move can be a blessing in disguise for DeFi protocols like Uniswap. Uniswap will allow users to buy the non-restricted currencies and get the restricted ones. Whether the regulation prohibits any such maneuver is still unclear.

Vitalik Buterin, the founder of Ethereum, expressed his happiness at the fact that many Ethereum proponents are also criticizing the move. Importantly, the regulation sets no limit on Ethereum, which could give the currency a competitive edge over other competitors. Despite it, many Ethereum supporters have criticized Canada’s move.

According to the reports, Bitbuy and Newton, two of Canada’s biggest exchanges have already agreed to enforce the move.

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society’s biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.