OSC new rules attract a lot of criticism from the crypto community members
- OSC’s new rule, imposing a limit on the total worth of crypto that can be traded in a year
- The new rule is reportedly brought into existence to protect investors
- Criticism from the community is overwhelming to experience
- Vitalik Butterin chooses to support the criticizers of the rules
OSC’s new rule in Canada
According to the reports, it is believed that Canadian crypto exchanges BitBuy and Newton are going to impose restrictions on the crypto investors. It is noted that any resident in Canada won’t be allowed to trade if they surpass the limit which is set at CAD$30,000. Though the rule has exceptions where in cryptocurrencies such as Bitcoin, Ethereum, Litecoins and Bitcoin Cash won’t come under the rule, the rule did get a lot of back-lash from the community.
OSC, Ontario Securities Commission, which is piloting the rule, has surely got a lot of criticism from the community members. Upon receiving the criticism, the commission reportedly made a statement that, the rule has been enacted to save the investors. Let’s look what does OSO actually means.
Protection of investors, a priority!
According to a notice, the commission is implementing the new rule to save the investors from cryptocurrency. In addition to limiting the purchase power of the investors, they will also add a questionnaire asking details about the financial situation, risk tolerance and what not. All of these, as stated by the commission are brought in to save the investors.
As the new rule strikes the Canadian crypto market, the crypto community burst, criticizing the rule, left, right and center. The below tweets are some of the examples of how the situation is:
If you are doing something silly like Canada 🇨🇦 best to go with % of Net Worth rather than annual sum – New regulatory changes in Canada for crypto. You are allowed to buy as much #BTC / $ETH / $LTC / $BCH as you want, but any other crypto has a limit of 30k net buy per year. 🤮 pic.twitter.com/IPrZq4k6S1
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) August 18, 2022
“You buy $20,000 of Solana (SOL), a restricted cryptocurrency. You’ve now used $20,000 of your $30,000 annual limit. If you want to purchase more crypto, you are limited to buy a maximum of $10,000”
Canada what is u doinghttps://t.co/1sNK7w80pd https://t.co/Z5azEzCrPj
— DavidHoffman.eth 🦇🔊🏴 (@TrustlessState) August 17, 2022
After seeing how the community started reacting, Vitalik Butterin, who is the co-founder of Ethereum Blockchain went on to comment on the situation.
Vitalik Butterin’s comment
The co-founder of Ethereum, even when the native token of his blockchain was ruled out as an exception went on to support the criticism for the new rule. Vitalik’s tweet is attached below, to give us a clear picture of what he believes about the rule:
Glad to see Ethereum people pushing against regulations that privilege ETH over other legitimate cryptocurrencies.
(I have not dug into the details of what specifically is going on and to what extent it’s a gov thing vs a compliance decision of one business, but either way…) https://t.co/NDYPh5rqsk
— vitalik.eth (@VitalikButerin) August 17, 2022
Seeing the back-lash, it makes me believe that the rule might not stand grounds and might get revoked more sooner than anticipated.
What do you think about the new rule in Canada? Do you think the outburst from the community members was right? Share your thoughts in the comment section below. Also if you found the content informative, then please share it with your family and friends.