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Canadian Regulatory Requirements
Canadian Regulatory Requirements

Information regarding the recent Risk Assessment & Investment Limits Implemented

Customer Care Team avatar
Written by Customer Care Team
Updated over a week ago

To ensure compliance with new Canadian regulations aimed at protecting consumers, all clients are now required to provide information about their prior investment experience, risk tolerance, financial situation, and address verification during our account verification process. This assessment is carried out to evaluate the appropriateness of engaging in digital asset investments for you.

Based on your provided responses, you will either be granted access to our platform, possibly with specific limitations on net purchases (discussed below), or if your answers indicate that your risk tolerance, financial situation, and/or knowledge is incompatible with digital asset investments, you will be unable to proceed with opening an account.

Kindly be aware that if your risk profile is identified as unsuitable/inappropriate/restricted, you won’t be able to either create or hold an account with us. However, if you feel that your answers do not reflect your current position, we first strongly advise you to familiarize yourself with the risks associated with trading digital assets, before retaking the risk assessment.

Investment Limits

Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island

  • If you reside in these specific provinces of Canada, your net purchases of certain digital assets will be subject to rolling 12-month limits, starting from the date of opening your account.

  • Net purchases limit is set to $30,000 CAD

  • There are no limits applied to purchases of Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), or Litecoin (LTC).

British Columbia, Manitoba, or Quebec

  • If you reside in these specific provinces of Canada, there is no applicable limit on the trading activities you conduct, in any digital assets available on the platform.

Please refer to the table below for a summary of the applicable limits:

Permitted Client *

Permitted client has the meaning set out in National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations and includes very high net worth persons and institutional investors. If you think you may meet the definition of permitted client, please contact Catalyx customer support. Please be aware that if you are a permitted client, we may request additional information from you to verify your status.

Please be aware that these purchase limits are determined by the Canadian dollar value of your trades at the time of transaction, period, the sale amount is credited towards your annual limit (sales are offset against purchases). Any fluctuations in the value of your digital assets after a trade do not impact your limits.

Loss Notifications

As per Canadian regulations, it is our responsibility to notify you when the value of your digital asset holdings reaches a certain predefined level of loss. This threshold is determined by the information you provided during the mandatory risk/appropriateness assessment conducted during the verification process of your account.

You will receive a notification every 30 days if there are significant fluctuations in the market value of the digital assets in your portfolio, surpassing the predefined loss threshold on your account. Please be aware that the value of each asset in your portfolio may change between the time you receive the notification and when you check your asset value in your account.

Additionally, we will provide you with real-time notifications while you are logged into your account.

The loss and trading limits’ calculations are currently being drafted and will come into effect on June 22nd, 2023. We will be updating you once finalized.

Should you have any questions or concerns, regarding the information above,

please email us directly.

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