Canada’s Govt. Emergencies Act Gives Power To Freeze Crypto Transactions Unilaterally

In an effort to put an end to the ongoing trucker protests Canada‘s Prime Minister Justin Trudeau decided to invoke the 1988 Emergencies Act, for the first time in 50 years giving the power to freeze bank accounts and monitor “large and suspicious transactions” including funds used for crypto transactions without inviting any civil liability.

Under the above-mentioned act, crowdfunding platforms and payment services providers that cover crypto exchanges and other crypto financing platforms now must register with the Financial Transactions and Reports Analysis Centre of Canada [FINTRAC].

As per reports, the Tallycoin bitcoin fundraiser had raised more than 20 bitcoin [BTC] which comes close to $1 million for the truckers. The organizers have since shut down the fundraising page, and have asked to “stay tuned” about the next steps.

Interestingly Jesse Powell, CEO of crypto exchange Kraken, was one of 5,000 donors to the HonkHonkHodl crowdfunding page on the Tallycoin platform. The issue escalated after GoFundMe blocked $10 million in donations meant for the Canadian truckers protesting vaccine mandates.

During a press conference, Canada’s Deputy Prime Minister and Minister for Finance, Chrystia Freeland revealed that the government is working to increase the scope of Canada’s anti-money laundering, monitoring, and terrorist financing laws to include crowdfunding platforms and the payment service providers they use.

“These changes cover all forms of transactions, including digital assets such as cryptocurrencies,” she announced during a press conference on Monday night

More about Canada’s rare Emergency Act

The act that was passed in the Canadian parliament back in 1988, also authorizes the federal government to take temporary additional powers in the event of public welfare, public order, international and war emergencies.

Adopted as a direct response to cut off the funding of the ongoing trucker blockades, which the administration alleged have caused major disruption to cities including the capital Ottawa, the act is seeking to counter “illegal” protests over Canada’s COVID-19 restrictions.

At present, blockades across Canadian cities have been reported caused by huge trucks lined up in the nation’s highways as well as major trading corridors with the US. As per Gov. allegations, the blockades are upsetting the supply-chain network which in turn puts a great deal of stress on the economy.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.