Canada heavy-handed overreach continues with crypto restrictions

On the heels of imposing the emergency act on their own citizens, the Ontario Securities Commission has now restricted the purchase of cryptocurrencies, explaining the move as being able to better “protect crypto investors”. 

Canada sees changes

From what was once seen as a genteel, benign, and easy-going country, Canada has arguably become a much more restrictive state over just the last several months.

A media blackout prevented the coverage of events in Ottawa as peacefully protesting truckers were violently arrested and many sympathisers had their bank accounts seized or crypto wallets blacklisted if they sent any funds to the cause. Invoking the Emergencies Act which allowed the police to go beyond what was normal, was seen by many as severe government overreach.

Exchange explains restrictions

Now, Canada-based cryptocurrency exchanges Bitbuy and Newton have been forced to set a $30,000 annual buy limit for customers on most cryptocurrencies in order to comply with regulations imposed by the Ontario Securities Commission (OSC).

Newton put out a post detailing the new regulatory changes, and which also sought to explain why the new measures were being imposed. 

“These changes are to protect crypto investors, like yourself, and to make sure investors are aware of the risks associated with investing in crypto assets.”

Puzzling omittances from restrictions

The new restrictions have not been imposed across the board, and Bitcoin, Ethereum, Litecoin, and Bitcoin Cash have been spared. Also, if the exchange client lives in BC, Manitoba, Alberta, or Quebec, the regulation does not apply at all.

It might be said that not applying restrictions on Litecoin or Bitcoin Cash shows that the OSC is rather a long way behind in understanding how the cryptocurrency market has changed over the last few years, given that both are outside of the top 20 cryptos ranked by market cap.

That the Canadian regulatory watchdog probably couldn’t be bothered to find out such a simple fact says volumes about its lack of knowledge and eagerness to just suppress cryptocurrencies as quickly as possible, without even investigating which ones are most purchased outside of Bitcoin and Ethereum. 

CBDCs to prop up system

The Canadian government is currently studying the viability of a central bank digital currency (CBDC). However, this could lead to a complete loss of financial freedom and privacy for its citizens. 

Regulators around the world are likely to continue to attempt to shackle and suppress cryptocurrencies, all the while citing the ‘scams’ and the ‘risks’ to investors and the monetary system as a whole.

However, the house of cards that currently is the fiat debt-backed monetary system, is teetering on the brink of collapse. Whether this happens within a year or 3 nobody knows, but the chances of this happening are certainly high. 

Cryptocurrencies certainly have their issues, but a decentralised world where citizens can be their own bank and pay whoever they want is vastly preferable to the ball and chain that comes with a CBDC.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.