The Canadian Securities Authority (CSA) has set limits on the purchase of cryptocurrencies to protect investors from the risks in crypto-asset transactions. Under the regulation, investors will be able to invest up to 30,000 Canadian dollars per year in cryptocurrencies other than Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). Cryptocurrencies excluded from the scope can be bought and sold indefinitely. In addition, customers of crypto exchanges in the provinces of BC, Manitoba, Alberta or Quebec were excluded from the application.
On the other hand, the exclusion of Bitcoin Cash (BCH) and Litecoin (LTC), apart from the largest cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), caused criticism that the regulator did not follow the crypto markets closely. Because although both cryptocurrencies were once the altcoins with the highest market capitalization, both are now outside the top 20.
Cryptocurrency exchanges operating in the Canadian jurisdiction are also expected to work in line with the new regulation within a 12-month period. Another detail about the new regulation is that the scope is designed to affect only cryptocurrencies that are sold using Canadian dollars.
In addition, if the investor sells the limited crypto asset in his possession within the 12-month period, this amount will be reduced from the purchase limit. In short, Canadian investors will be able to trade within the limit of 30,000 Canadian dollars.
In addition, regulators require crypto exchanges to collect information about their customers about their experience and financial situation in crypto investing. This move to protect investors comes after crypto exchanges operating in the country received licenses from the Ontario Securities Commission (OSC) and other Canadian securities regulators in the CSA jurisdiction. Known for its crypto-friendly approaches in the past, Canada seems to have changed its attitude towards the crypto space recently.