What is the Net Buy Limit? Under the regulations of the Canadian Securities and Exchange Commission (CSA), Canadian residents in the provinces who buy and sell cryptocurrencies on purchased platforms are subject to an annual net purchase limit of 30,000 Canadian dollars (CA$) for certain cryptocurrencies. “Eligible crypto investors” are subject to a limit of 100,000 Canadian dollars (CA$). There is no net purchase limit for “qualified investors”. Are there exemptions from the Net Buy Limit? Yes. Restrictions do not apply if you live in one of the following provinces:
- Manitoba, Alberta, Quebec, British Columbia
Are there any cryptocurrencies that don't count towards the limit? Purchases of certain cryptocurrencies are not counted towards the limit and have been exempted from the CSA's guidelines. This includes Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and the like, as well as any other asset that the CSA considers exempt. How is the net purchase limit calculated? The net purchase limit is the total amount you spend on the purchase of non-exempt cryptocurrencies (at a purchase price) minus the total amount received from the sale of cryptocurrencies to dollars (at a sale price) for the previous 12 months. For example, if you spend $40,000 Canadian dollars (CA$) on cryptocurrency purchases and sell cryptocurrencies for $15,000 CA$over a period of 12 consecutive months, your net purchase limit is $25,000 CA$(40,000 – 15,000 = $25,000 CAD). The transfer of one non-exempt cryptocurrency to another is neutral. For example, a switch of 10,000 Canadian dollars (CA$) of Solana to 10,000 Canadian dollars (CA$) of Bitcoin is a total purchase amount of 10,000 Canadian dollars (CA$) and a countersale of 10,000 Canadian dollars (CA$), which amounts to 0 Canadian dollars (CA$) net. Purchasing exempt cryptocurrency does not count towards your net purchase limit. For example, if you purchase 10,000 Canadian dollars (CA$) of Bitcoin and there are no other cryptocurrencies, your net purchase limit is still 30,000 Canadian dollars (for more information see ‘Are there any cryptocurrencies that don't count towards the limit?'). How do Crypto.com calculate the 12-month period? The period is 365 consecutive days from the date of opening your account. For example, if your account was opened on January 1, the first day is January 1 and the 365th day is on December 31. Each day starts at 8:00 a.m. (UTC+0) and ends at 7:59 a.m. (UTC+0) the following day. If you open your account on January 1, the first day will be from 8:00 a.m. (UTC+0) on January 1 to 7:59 a.m. (UTC+0) on January 2. Does the net purchase limit reboot? The limit is based on the previous 12 months of transactions, so there can be a monthly change if you are above or below the limit. For example, if you enter a limit of $30,000 Canadian dollars (CA$) and the total amount of your crypto purchases (excluding the exempt crypto) minus your crypto sales from January 1 to December 31 is $30,000 Canadian dollars (CA$), then you have reached your limit. But if the total amount of your crypto purchases (excluding the exempt crypto) minus your crypto sales from February 1 to January 31 thereafter is $25,000 Canadian dollars (CA$), then you haven't reached your limit. How do Crypto.com determine if I am subject to the net purchase limit? In accordance with the regulations, we determine your limit based on the response to the following question: Please select the option that best describes you: I am a short-term ‘Qualified Investor', I am a Long-Term ‘Qualified Investor', I am a short-term ‘Eligible Crypto Investor', I am a long-term ‘Eligible Crypto Investor', none of the above (you will be eligible for a higher limit) individuals who choose (1) or (2) are subject to the limit. Individuals who choose (3) or (4) are subject to a net purchase limit of CA$100,000. Individuals who choose (5) are subject to a net purchase limit of $30,000 Canadian dollars (CA$). All customers are obligated to provide true answers and we reserve the right to change your limit if it is determined that the answer given is incorrect. However, if your circumstances change, you can let us know (see next question). The answers to this question are defined as follows: A short-term qualified investor is a person who meets one of the following conditions:
- My net pre-tax income in the last calendar years has been over CA$200,000 and I expect my net income before tax this year to exceed CA$200,000; or
- My net income before tax together with that of my spouse exceeds CA$300,000 in each of the last two calendar years, and I expect my and my spouse's net income before tax to exceed CA$300,000 in the current year; or
- My net assets exceed CA$5,000,000; or
- My and my partner's cash, securities, and crypto assets are worth more than 1,000,000 Canadian dollars (CA$) before tax but minus any liabilities.
- The purpose of my investment is to increase the value of your property
- My investment horizon is less than a year
2. A long-term qualified investor is a person who meets one of the following conditions:
- My net pre-tax income in the last calendar years has been over CA$200,000 and I expect my net income before tax this year to exceed CA$200,000; or
- My net income before tax together with that of my spouse exceeds CA$300,000 in each of the last two calendar years, and I expect my and my spouse's net income before tax to exceed CA$300,000 in the current year; or
- My net assets exceed CA$5,000,000; or
- My and my partner's cash, securities, and crypto assets are worth more than 1,000,000 Canadian dollars (CA$) before tax but minus any liabilities.
- The purpose of my investment is to increase the value of my property or maintain the value of
- My investment horizon is more than a year
3. A crypto investor who is eligible for short processing is a person who meets one of the following conditions:
- My net income before tax exceeds CA$75,000 in each of the last two calendar years, and I expect my income to exceed that level of income in the current year; or
- My net pre-tax income, alone or with my partner, has exceeded CA$125,000 in each of the last two calendar years, and I expect to exceed this level of income in the current year; or
- My clean assets, alone or with my partner, exceed CA$400,000
- The purpose of my investment is to increase the value of my property
- My investment horizon is less than a year
4. A long-term eligible crypto investor is a person who meets one of the following conditions:
- My net income before tax exceeds CA$75,000 in each of the last two calendar years, and I expect my income to exceed that level of income in the current year; or
- My net pre-tax income, alone or with my partner, has exceeded CA$125,000 in each of the last two calendar years, and I expect to exceed this level of income in the current year; or
- My clean assets, alone or with my partner, exceed CA$400,000
- The purpose of my investment is to increase the value of my property or maintain the value of
- My investment horizon is more than a year
If my circumstances change so that I am eligible for restrictions or increased limitation, how can I notify Crypto.com? Every 30 days (on the 30th day after you have reported to us whether you are a qualified investor, eligible crypto investor or not), you will be entitled to update your answer. You are committed to providing real answers. Crypto.com reserves the right to change your limit if your answer is determined to be incorrect.
