Criptocurrencies users react to new Canadian rules

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Criptocurrencies users react to new Canadian rules

Vitalik Buterin praised community members for speaking out against new Canadian rules limiting buys of ether.

Canadian exchange Bitbuy and Newton are imposing CAD$30,000 $23,100 annual buy limits on all tokens except Bitcoin, Ethereum,Litecoin andBitcoin. This doesn't apply to British Columbia, Alberta, Manitoba, or Quebec residents.

Some social media users pointed out that affected individuals can bypass the rules by loading up on unrestricted token, transferring to a decentralized exchange, and swapping into the token of their choice.

The Ontario Securities Commission OSO has criticised a number of prominent criptocurrencies industry figures.

Newton posted a notice detailing the new OSO rules, saying that this has an impact on all Canadian cripto trading platforms. The OSO is bringing changes to protect investors and to make awareness of the risks associated with investing in criptocurrencies, according to the notice.

Newton said users will have to complete a trading questionnaire before being allowed to trade, as well as the annual buy limits. This is a way to collect information on users trading experience, personal financial situation, and risk tolerance.

Portfolios will have assigned loss levels based on the risk tolerance stated in the trading questionnaire. Loss notifications will be sent as the user's portfolio approaches the loss level indicated.

Simon Dixon, the CEO of investment platform BnkToTheFuture, called this silly, as the regulations do not take into account an individual's net worth.

Dixon pointed out that the rules that exclude certain tokens create a two-tier system, in effect picking winners and losers. This goes against the remit of regulators, who should be overseen with neutrality.

David Hoffman, CEO of Bankless, expressed disbelief at the CAD $30,000 annual limit on restricted tokens. He said it makes little sense to restrict investors' allocation choice.

Buterin chimed in, saying that the community is expressing their grievances, even though ETH is not affected by the new rules.