Two Canadian cryptocurrency exchanges, Bitbuy and Newton, have introduced a buy limit on consumer altcoins purchases.
Essentially, consumers in the provinces where the two exchanges are based will have a C$30,000 cap on “restricted coins”.
Newton confirmed that it’s working with the Ontario Securities Commission (OSC) to roll out these changes.
The company explained in a statement that the move was aimed at protecting retail consumers, arguably some of the worst exposed to crashes that happen in the cryptocurrency space.
“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”, Newton noted in a statement.
Newton has also registered as a restricted dealer with the the OSC. Newton is not the only company to pursue this opportunity, Bitbuy announced similar measures.
However, the exchange will make it possible for “eligible investors” to buy up to C$100,000 of altcoins and other “restricted cryptocurrencies”.
A special KYC and AML process must be passed beforehand, however. Understandably, both companies are aiming at Ontario which houses 40% of the Canadian population and is therefore an important focal point of cryptocurrency platform efforts and investments.
Part of a future success and vibrant cryptocurrency ecosystem will be contingent on investors being protected.
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