What Are Net Purchase Limits?
Under regulations by the Canadian Securities Administrators (CSA), residents of most Canadian provinces face annual net purchase limits when trading cryptocurrencies on platforms like Crypto.com. Here’s a breakdown:
- Standard Investors: $30,000 CAD yearly limit.
- Qualified Cryptocurrency Investors: $100,000 CAD yearly limit.
- Qualified Investors: No purchase limits.
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Exemptions to the Limits
The limits do not apply if you reside in:
– Manitoba
– Alberta
– Quebec
– British Columbia
Exempt Cryptocurrencies
Purchases of certain cryptocurrencies do not count toward the limit, including:
– Bitcoin (BTC)
– Ethereum (ETH)
– Litecoin (LTC)
– Bitcoin Cash (BCH)
– Other CSA-exempt assets
How Net Purchase Limits Are Calculated
The formula is straightforward:
Net Purchase Limit = Total Spent on Non-Exempt Crypto (buys) – Total Earned from Selling Crypto (sells)
Example:
– If you spent $40,000 CAD on non-exempt crypto and earned $15,000 CAD from sales, your net limit usage is $25,000 CAD.
Key Notes:
- Transfers: Converting one non-exempt crypto to another (e.g., Solana to Bitcoin) is neutral—no net impact.
- Exempt Purchases: Buying BTC/ETH/etc. doesn’t reduce your available limit.
Crypto.com’s 12-Month Calculation Period
- Duration: 365 days from account opening, resetting daily at 8:00 AM UTC.
- Example: An account opened on January 1 calculates limits until December 31 of that year.
Does the Limit Reset Annually?
No—it’s a rolling 12-month window. If you hit the $30,000 CAD limit on December 31, your capacity frees up as earlier transactions age past 365 days.
Who Faces Purchase Limits?
Crypto.com determines your limit based on investor classification:
| Classification | Net Purchase Limit |
|---|---|
| Short/Long-Term Qualified Investor | No limit |
| Short/Long-Term Qualified Crypto Investor | $100,000 CAD |
| All Others | $30,000 CAD |
How Classifications Are Defined
1. Qualified Investors
Must meet one of:
– $200,000+ CAD annual net income (individual) or $300,000+ (with spouse).
– $5M+ CAD net worth.
– $1M+ CAD in liquid assets (excluding liabilities).
2. Qualified Crypto Investors
Must meet one of:
– $75,000+ CAD annual net income (individual) or $125,000+ (with spouse).
– $400,000+ CAD in clean assets.
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Updating Your Investor Status
- Frequency: Every 30 days.
- Requirement: Provide truthful updates. Crypto.com may adjust limits if discrepancies are found.
FAQs
1. Do limits apply to stablecoins like USDC?
Yes, unless CSA explicitly exempts them.
2. Can I split purchases across exchanges to bypass limits?
No—limits apply per investor, not per platform.
3. How are crypto-to-crypto trades treated?
Only fiat-based purchases/sales impact the limit.
4. What if I move to an exempt province mid-year?
Limits cease immediately upon residency change.
5. Are mining rewards counted toward limits?
No—only purchases with fiat or asset sales are tracked.
6. How do I check my current limit usage?
Monitor via Crypto.com’s account dashboard or statements.
Final Tips
- Track exempt/non-exempt crypto purchases separately.
- Consult a tax professional for complex scenarios.
- Stay informed about CSA regulation updates.
By understanding these rules, Canadian users can navigate Crypto.com’s limits effectively while maximizing their crypto portfolio growth.