Understanding Net Purchase Limits
The Canadian Securities Administrators (CSA) mandates that residents in most Canadian provinces must adhere to specific annual net purchase limits when trading cryptocurrencies on platforms like Crypto.com. These limits are categorized as follows:
- Standard Investors: CA$30,000 annual net purchase limit for non-exempt cryptocurrencies.
- Qualified Cryptocurrency Investors: CA$100,000 annual limit.
- Qualified Investors: No purchase limits apply.
Exemptions to the Limit
The following provinces are exempt from these restrictions:
- Manitoba
- Alberta
- Quebec
- British Columbia
Additionally, purchases of exempt cryptocurrencies (e.g., Bitcoin, Ethereum, Litecoin) do not count toward the limit. The CSA may designate other assets as exempt.
Calculating Net Purchase Limits
Net purchases are calculated as:
Total spent on non-exempt cryptocurrencies (purchase price) minus total proceeds from selling cryptocurrencies (sale price) over a 12-month rolling period.
Examples:
Scenario 1:
- Spent CA$40,000 on purchases.
- Earned CA$15,000 from sales.
- Net Limit Used: CA$25,000 (CA$40,000 – CA$15,000).
Scenario 2:
- Converted CA$10,000 Solana to Bitcoin.
- Net Effect: CA$0 (neutral transaction).
👉 Learn more about Crypto.com’s trading policies
How Crypto.com Implements the Limit
- Timeframe: 365 days from account opening, resetting daily at 8:00 AM UTC+0.
- Dynamic Adjustments: Limits recalculate monthly based on the trailing 12-month activity.
Determining Your Limit
Users select their investor status during onboarding:
- Qualified Investor (Short/Long-Term): No limits.
- Qualified Crypto Investor: CA$100,000 limit.
- Standard Investor: CA$30,000 limit.
Criteria for Status:
- Income/Net Worth Thresholds: Vary by category (e.g., CA$200K+ annual income for Qualified Investors).
- Investment Intent: Short-term (<1 year) vs. long-term holdings.
Updating Your Status
Users may update their investor classification every 30 days if financial circumstances change. Crypto.com reserves the right to adjust limits if discrepancies are found.
👉 Explore Crypto.com’s compliance FAQs
FAQs
1. Which cryptocurrencies are exempt from the limit?
Bitcoin, Ethereum, and CSA-approved assets are exempt.
2. Does transferring between cryptocurrencies count toward the limit?
No—conversions are neutral if values match.
3. How often does the limit reset?
It’s a rolling 12-month window, not a calendar year.
4. What happens if I exceed my limit?
Crypto.com may restrict further purchases of non-exempt assets.
5. How do I prove my investor status?
Submit documentation (e.g., tax records) if requested.
6. Are stablecoins exempt?
Only if classified as exempt by the CSA.
Key Takeaways
- Verify your investor status to determine applicable limits.
- Track non-exempt transactions to avoid exceeding your cap.
- Consult CSA guidelines for province-specific exemptions.
For further details, refer to Crypto.com’s official help page.