What does “Net Purchase Limit” for crypto mean?
Think of a net purchase limit as your yearly budget for buying certain cryptocurrencies. You start with $30,000, but every time you sell some crypto it’s like getting a refund that increases your budget back up for the year.
Which cryptos have a $30,000 purchase limit?
Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) do not have this purchase limit.
The limit applies to all other cryptocurrencies including Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), PEPE, Ripple (XRP), Stellar (XLM), Polygon (MATIC), Cardano (ADA), BONK, Internet Computer (ICP), Avalanche (AVAX), Polkadot (DOT), FetchAI (FET), Hedera (HBAR), Chainlink (LINK), THORChain (RUNE), GALA, Render (RNDR), Optimism (OP), Celestia (TIA), Filecoin (FIL), Arbitrum (ARB), Ondo Finance (ONDO) and others.
Why is there a $30,000 limit on crypto purchases?
The $30,000 limit is a regulatory measure set by the Canadian Securities Administrators (CSA) to protect investors. It’s designed to prevent excessive spending on riskier investments, ensuring that investors do not put too much money into assets that might see high volatility or uncertain returns.
Does the limit apply if I live in Alberta, British Columbia, Manitoba, or Québec?
No, if you live in Alberta, British Columbia, Manitoba, or Québec—there are no limits on how much crypto you can buy.
The limit ONLY applies if you live in Ontario, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Northwest Territories, Yukon, or Nunavut.
What happens if I sell my crypto?
Selling your crypto (that is subject to this purchase limit) helps you regain some of your spending budget. For example, if you’ve already spent your $30,000 limit and then sell $5,000 worth of Solana (SOL), you can now buy another $5,000 worth of the same or another limited cryptocurrency such as Shiba Inu (SHIB) within the same year.
What if I reach my $30,000 crypto purchase limit?
If you use up your $30,000 budget, you can’t buy more of those limited cryptocurrencies until you either sell some or wait until one year passes from the date of purchase. For example, if you bought $10,000 worth of Solana (SOL) in January 2024, that amount will stop counting against your limit in January 2025, your purchase limit will be increased automatically to allow you to buy more.
How do I check how much I can still spend?
Your trading limit will be displayed in the VirgoCX app, right above the Buy/Sell button when trading a limited cryptocurrency. Note that trading limits will not be shown if you’re living in Alberta, British Columbia, Manitoba, or Québec—there are no purchase limits for users in these provinces.
When does my budget reset?
Your budget resets on the one-year anniversary of each purchase.
For example, if you bought the following:
1) $10,000 worth of Ondo Finance (ONDO) on June 1, 2024
2) $10,000 worth of Solana (SOL) on July 1, 2024
3) $10,000 worth of PEPE on August 1, 2024
Your purchase limit will be freed up:
1) $10,000 on June 1, 2025
2) $10,000 on July 1, 2025
3) $10,000 on August 1, 2025
Key Points to Remember
Monitor your spending and sales of limited cryptocurrencies to effectively manage your $30,000 limit. This rule acts as a safety net, helping ensure you diversify your investments and avoid excessive risks. If you’re unsure about how these limits might affect your investment strategy, it’s a good idea to consult with a financial advisor knowledgeable in cryptocurrency trading.