Crypto

The limit for buying cryptocurrency in NB is $30,000.

The rapid development of the cryptocurrency ecosystem scares regulators. Like several other Canadian provinces, New Brunswick is now limiting the amount of cryptocurrency that can be purchased annually to $30,000.

This restriction applies to retail investors in New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan.

The four major cryptocurrencies, Bitcoin, Ethereum, Litecoin and Bitcoin Cash, are exempt from this rule imposed by the Canadian Securities Administrators, who coordinate and harmonize the regulation of Canada’s capital markets.

Cryptocurrency exchanges Bitbuy, Newton, Netcoins, Crypto Assets, Wealthsimple, Coinsquare Capital Markets, Crypto.com and Simply Digital Technologies have already met these requirements.

They must also submit a questionnaire to investors to assess their financial position, their risk tolerance and their understanding of risk.

However, some accredited investors may be exempt from this purchase restriction. Residents of Alberta, British Columbia, Quebec and Manitoba were also unaffected.

Newton’s announcement of new general terms of use has reignited the online debate about the freedom to manage your finances. Ethereum co-founder Vitalik Buterin tweeted that he was happy to see the reaction of the opponents of this settlement.

This is primarily intended to protect consumers from market volatility. Due to speculative movements, the value of certain virtual assets can sometimes increase dramatically before collapsing in just a few hours, resulting in significant financial losses.

In his latest review of the financial system, Bank of Canada Governor Tiff Macklem noted that digital assets remain largely speculative investments.

“These markets do not yet pose a systemic risk to Canada’s financial system, but because they are unregulated, they operate without many of the safeguards found in the traditional financial system. Therefore, investors are exposed to various risks, such as sudden and significant financial losses due to fraud, price drops or the massive sale of stablecoins,” he wrote.

In New Brunswick, the Financial and Consumer Services Commission warns of other risks specific to virtual currencies.

“Digital wallet companies and crypto asset trading platforms are vulnerable to hacker attacks and cybersecurity threats, putting your assets at risk. There may not be enough assets on the platform to cover your purchase. There is also no guarantee that the demand for this crypto asset will continue, which may make it difficult to convert your crypto assets into fiat currency. It can be difficult, if not impossible, to identify or locate a service provider or intermediary and take action if there is a problem,” we read on the website of the organization, which regularly issues warnings. provincial citizens without registration with the regulatory body, as required by law.

The skeleton of the cryptoworld looms on the horizon. The latest federal budget provides $17.7 million in funding over five years to fund a study that will examine, among other things, how to adapt the financial sector’s regulatory framework to address the risks associated with the digitization of money, and how to maintain the security and stability of the financial sector in the context of the development of these new technologies. The review will also address the need for a central bank digital currency.

Canada was a pioneer last year, becoming the first country to allow cryptocurrency exchange-traded funds (ETFs) that can now be integrated into registered portfolios such as RRSPs or TFSAs.

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