Canada has implemented a new law restraining how much of certain assets people can purchase. The country has deemed four cryptocurrencies “unrestricted” and the rest “restricted”. “Unrestricted” refers to the ability to purchase any amount of the currency. “Restricted “ currencies have a $30,000 annual limit.
Unrestricted cryptos include:
- Bitcoin cash
There is no limit for these cryptocurrencies, and residents can purchase as much as they would like of these four currencies. At least the Canadiens still have some hope.
Every other digital asset has a 30k limit annually. The only provinces not impacted are Alberta, British Columbia, Manitoba and Quebec. The other 9 provinces will have the limit in place, only allowing citizens to purchase $30,000 worth of “restricted” cryptocurrencies every year.
If you wanted to buy $20,000 worth of XRP on September 1st, 2022, you would only be legally allowed to spend another $10,000 on XRP or any other token (SOL, ALGO, ADA, etc) until September 1st of 2023.
Selling “restricted” crypto can bring the limit back up to 30k. It’s assumed the law is meant to protect retail investors, who presumably have less to lose and are less knowledgeable, after all the cryptocurrency hacks and market crashes.
On the bright side, cryptocurrencies could be classified for accredited investors only and be equated to startup and VC investing. This would completely restrict access to anyone who does not hold a one million dollar net worth.
Canada seems to be going down a bad path in terms of a democratic monetary policy. These new regulations, restricting citizens’ lawful ability to spend their taxed income on investments of their choice, come after Canada had the trucker-rally fiasco.
During a peaceful rally where truckers drove across the country to stage a protest, the government began freezing the bank accounts of those at the protest. Business bank accounts (business trucks were in attendance) were no exception, and neither were the family members of protestors, who had attempted to send them money.
The government went as far as contacting cryptocurrency wallet providers, demanding customer information. Of course, decentralized solutions do not hold data, and can not possibly provide it (whether legally demanded or not).
Canada is undoubtedly taking an interesting path regarding the new digital technology and will be very interesting to watch in the future. Canada’s actions may set a precedent for the rest of the world, a potentially detrimental one.
For media, content or writing inquiries please contact Patrick Hagerty at PatrickJHags@gmail.com