What is the Net Buy Limit in the Crypto.com Exchange?
Under regulations set by the Canadian Securities Administrators (CSA), Canadian residents in most provinces who buy and sell cryptocurrency on crypto platforms are subject to an annual Net Buy Limit of US$23,000 worth of certain cryptocurrencies.
Eligible Crypto Investors are subject to a US$75,000 limit.
There is no Net Buy Limit for Accredited Investors.
Is anyone exempt from the Net Buy Limit?
Yes. The limits stated above do not apply if you live in any of the following provinces:
Manitoba
Alberta
Quebec
British Columbia
Do any cryptocurrencies not count towards the limit?
Purchases of certain cryptocurrencies do not count towards your limit and are exempt from CSA’s guidance. This includes Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC), Pax Dollar (USDP), and any other assets the CSA deems exempt.
How is the Net Buy Limit determined?
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 US$40,000 to buy non-exempt cryptocurrencies and sell non-exempt cryptocurrencies for US$15,000 over a sequential 12-month period, your net buy limit is US$25,000 ($40,000 - $15,000 = $25,000).
Trading one non-exempt cryptocurrency for another exempt cryptocurrency is net neutral. For example, trading US$10,000 of Solana (SOL) for US$10,000 of BTC is a total purchase amount of US$10,000 and an offsetting total sale of US$10,000, resulting in net US$0.
Buying an exempt cryptocurrency does not count toward your Net Buy Limit. For example, if you purchase US$10,000 of BTC and no other cryptocurrencies, your Net Buy Limit is still US$23,000 (see ‘Do any cryptocurrencies not count towards the limit?’ for details).
How does the Crypto.com Exchange count the 12-month time period for my annual limit?
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 31 December. Each day begins at 08:00 UTC and ends at 07:59 UTC the next day. If you open your account on 1 January, the first day would be 08:00 UTC on 1 January to 07:59 UTC on 2 January.
Does the Net Buy Limit reset?
This limit is based on the preceding 12 months of transactions. Whether you are above or below the limit could change monthly.
For example, if you are subject to the US$23,000 limit and the total sum of your cryptocurrency purchases (excluding the exempt cryptocurrencies) minus your cryptocurrency sales from 1 January to 31 December is US$23,000, you would 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 US$20,000, you would not have reached your limit.
What cryptocurrencies can I sell to reduce my Net Buy Amount?
To reduce your current Net Buy Amount, you should trade your non-exempt cryptocurrencies for exempt cryptocurrencies.
According to the CSA’s guidance, certain cryptocurrencies are exempt. These include BTC, BCH, ETH, LTC, and other assets the CSA deems exempt.
How does the Crypto.com Exchange determine whether I am subject to the Net Buy Limit?
In accordance with regulations, we determine your limit based on your response to the following question:
Please select the option that best describes you:
I am a short-term Accredited Investor
I am a long-term Accredited Investor
I am a short-term Eligible Crypto Investor
I am a long-term Eligible Crypto Investor
None of the above (You will not be eligible for a higher limit)
Individuals who select (1) or (2) are not subject to a limit. Individuals who select (3) or (4) are subject to a US$75,000 Net Buy Limit.
Individuals who select (5) are subject to a US$23,000 Net Buy Limit.
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).
The responses to this question are defined as follows:
Short-term Accredited Investor is a person who meets any of the following conditions:
My net income before taxes in each of the two most recent calendar years was greater than CA$200,000, and I expect my net income before taxes in this calendar year to be greater than CA$200,000; or
My net income before taxes combined with that of my spouse’s net income before taxes is greater than CA$300,000 in each of the two most recent calendar years, and I expect my and my spouse’s net income before taxes combined to be greater than CA$300,000 in the current calendar year; or
My net assets are greater than CA$5 million; or
My and my spouse’s cash, securities, and crypto assets are collectively worth more than CA$1 million before taxes but net of any liabilities.
My investment objective is to increase your asset value
My time horizon for my investment is less than one year
Long-term Accredited Investor is a person who meets any of the following conditions:
My net income before taxes in each of the two most recent calendar years was greater than CA$200,000 and I expect my net income before taxes in this calendar year to be greater than CA$200,000; or
My net income before taxes combined with that of my spouse’s net income before taxes is greater than CA$300,000 in each of the two most recent calendar years, and I expect my and my spouse’s net income before taxes combined to be greater than CA$300,000 in the current calendar year; or
My net assets are greater than CA$5 million; or
My and my spouse’s cash, securities, and crypto assets are collectively worth more than CA$1 million before taxes but net of any liabilities.
My investment objective is to increase my asset value or to store value
My time horizon for my investment is more than one year
Short-term Eligible Crypto Investor is a person who meets any of the following conditions:
My net income before taxes exceeds CA$75,000 in each of the two most recent calendar years, and I reasonably expect my income to exceed that income level in the current calendar year; or
My net income before taxes, alone or with my spouse, exceeded CA$125,000 in each of the two most recent calendar years, and I reasonably expect to exceed that income level in the current calendar year; or
My net assets, alone or with my spouse, exceed CA$400,000
My investment objective is to increase my asset value
My time horizon for my investment is less than one year
Long-term Eligible Crypto Investor is a person who meets any of the following conditions:
My net income before taxes exceeds CA$75,000 in each of the two most recent calendar years, and I reasonably expect my income to exceed that income level in the current calendar year; or
My net income before taxes, alone or with my spouse, exceeded CA$125,000 in each of the two most recent calendar years, and I reasonably expect to exceed that income level in the current calendar year; or
My net assets, alone or with my spouse, exceed CA$400,000
My investment objective is to increase my asset value or to store value
My time horizon for my investment is more than one year
If my circumstances change so that I am eligible for no limits or an increased limit, how can I inform the Crypto.com Exchange?
For retail users, every 30 days (on the 30th day after you first informed us whether you were an Accredited Investor, Eligible Crypto Investor, or neither), you will be eligible to update your response if you have reached the Net Buy Limit. You will see a notice banner in the Dashboard. You may review your answers to the suitability questionnaire accordingly to update your Net Buy Limit.
For institutional users, if your investor status has changed, reach out to your account manager to update your status.
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.