Over the past several months, we have been quietly working on our registration with the Ontario Securities Commission and the securities regulatory authorities in other provinces and territories of Canada. You may already be familiar with these changes as they impact all Canadian crypto trading platforms, not just Newton.
Why are these additional measures being put in place?
These changes are to protect crypto investors, like yourself, and to make sure investors are aware of the risks associated with investing in crypto assets.
Who are the regulators?
The Ontario Securities Commission (OSC) is Newton’s principal regulator and they generally handle securities regulation in the province of Ontario. Each province and territory of Canada has its own securities regulatory authority. Combined, the securities regulatory authorities from each of the provinces and territories make up the Canadian Securities Administrators (CSA). If you have invested in stocks in the past, you have most likely dealt with a regulated firm.
You will see the following changes on your Newton account — and we encourage you to read the additional FAQs to learn more about each:
- Trading questionnaire. We’ll need to collect some information about your past experience and knowledge with crypto investing, your financial situation, and your risk tolerance. You can expect to see this questionnaire when accessing your Newton account over the coming days. This must be completed to continue funding your account and trading. You only need to do this once. Learn more here.
- Net buy limits. Depending on both your province of residence, you may have net buy limits imposed on your account. You’ll be able to see these limits on the Newton app when you go to place a trade. These limits exclude the following coins: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. If you live in BC, Alberta, Manitoba, or Quebec, these limits do not apply. Learn more here.
- Portfolio loss notifications. Your responses to the questionnaire will tell us your risk appetite and how comfortable you are with various loss levels. You will receive a notification from Newton if your portfolio approaches the loss level you have indicated you are comfortable with in your questionnaire. Learn more here.