Under regulations set by the Canadian Securities Administrators (CSA), Canadian residents in most (but not all) provinces who buy and sell cryptocurrency on crypto platforms are subject to an annual net buy limit of CAD$30,000 worth of certain cryptocurrencies.

There is no Net Buy Limit for Permitted Clients (see How does Crypto.com determine whether I am subject to the net buy limit? below).

Yes. The Net Buy Limit does NOT apply to anyone who meets the definition of Permitted Client (the definition is set by regulations), and they do not apply if you live in any of the following provinces regardless of whether you meet the definition of Permitted Client:

Purchases of certain cryptocurrencies do NOT count towards your Net Buy Limit because they are exempt from the Net Buy Limit under the CSA’s guidance. These crypto assets are:

The Net Buy Limit is the sum of the total amount you spend to buy non-exempt cryptocurrencies (at purchase price) minus the total amount you received by selling cryptocurrencies for dollars (at sale price) over the preceding 12 months.

For example, if you spend CAD$40,000 to buy cryptocurrencies and sell cryptocurrencies for CAD$15,000 over a sequential 12-month period, your net buy amount is CAD$25,000 ($40,000 - $15,000 = $25,000). Accordingly, you would be below the Net Buy Limit of CAD$30,000.

Swapping one non-exempt cryptocurrency for another cryptocurrency is net neutral. For example, swapping CAD$10,000 of Solana for CAD$10,000 of Bitcoin is a total purchase amount of CAD$10,000 and an offsetting total sale of CAD$10,000, resulting in net CAD$0.

Buying an exempt cryptocurrency does not count toward your Net Buy Limit. For example, if you purchase CAD$10,000 of Bitcoin and no other cryptocurrencies, your net buy limit is still CAD$30,000 (see ‘Do any cryptocurrencies not count towards the limit?’ for details).

The period is a sequential 365 days based on the day your account is opened.

For example, if your account is opened on 1 January, the first day is 1 January, and the 365th day is December 31. Each day begins at 8:00 am (UTC +0) and ends at 7:59 am (UTC +0) the next day. If you open your account on 1 January, the first day would be 8:00 am (UTC +0) on 1 January to 7:59 am (UTC +0) on January 2.

The limit is based on the preceding 12 months of transactions, so whether you are above or below the limit could change monthly.

For example, if you are subject to the CAD$30,000 limit and the total sum of your cryptocurrency purchases (excluding the exempt cryptocurrencies) minus your cryptocurrency sales from 1 January to 31 December is CAD$30,000, you will have reached your limit.

But if the total sum of your cryptocurrency purchases (excluding the exempt cryptocurrencies) minus your cryptocurrency sales from 1 February to the following 31 January is CAD$25,000, you will not have reached your limit.

In accordance with regulations, all customers who are not Permitted Clients or are not residents of Alberta, British Columbia, Manitoba, or Quebec, are subject to the Net Buy Limit. We determine your residency as part of the account onboarding process.

We determine whether you are a Permitted Client, as defined by Canadian regulations, based on your answer to the following question:

Please check the one that is most applicable:

All customers are obligated to provide truthful answers, and we reserve the right to change your limit if we determine that the answer provided is inaccurate. However, if your circumstances change, you may inform us (see the next question).

Every 30 days (on the 30th day after you first informed us whether you were a Permitted Client or not, you will be eligible to update your response.

You are obligated to provide a truthful response. Crypto.com reserves the right to change your limit if your response is determined to be inaccurate.

Canadian regulations require Crypto.com to conduct an assessment to establish appropriate limits on the losses that a client that is not a Permitted Client can incur based on their responses to Crypto.com’s onboarding questions, and to provide notices and potentially restrictions on account activity as clients meet and/or exceed those loss limits.

Based on these assessments, Crypto.com will send customers individually electronic notifications when their crypto asset portfolios reach various thresholds of aggregate realized and unrealized losses. If a customer’s aggregate realized losses exceed certain thresholds, the customer may be prohibited temporarily from buying certain crypto assets.

Under Canadian regulations, Crypto.com is required to notify you if the value of your crypto portfolio is close to reaching a certain level of potential or realized loss and to notify you once your portfolio reaches that level of potential or realized loss. Those thresholds are determined by your responses to the questions asked in the account onboarding journey.

A notification is sent once every 30 days if your portfolio has reached the potential loss level when compared with the value of your assets when you acquired them on the Crypto.com platform or transferred them into your Crypto.com account. Your portfolio value may change from the time you receive the notification to the time you check your portfolio.

Please note that the potential loss level notifications are a regulatory requirement that inform you if the value of your portfolio reaches a certain level of potential loss. These notifications are not price alerts. Price alerts let you know about the change in price of assets on your watchlist.