For some days, the Canadian government has been faced with the challenging job of dispersing protesters who disobeyed the government’s order to stop their civil disobedience. As carried out by several citizens in the capital, Ottawa, and at the U.S-Canada border, the protests have led the government into invoking the anti-money laundry and terrorist financing acts that might lead to the seizure of significant cryptocurrencies across the country.
Truck drivers have shut down some significant parts of the country in protest by blocking the roads with trucks, making them impassable to people and vehicles. The protesting drivers do not support the government of Justin Trudeau’s decision to make a statement about the coronavirus pandemic and the measures it has put in place to combat the spread of the virus.
Matters Arising
The Canadian Prime Minister, Justin Trudeau, resorted to invoking the state emergency act after the government failed to curtail the widespread protests going on in the country, according to CoinDesk.
According to Deputy Prime Minister Chrystia Freeland, banks are given the green light to freeze the bank account of suspected persons without a court order. The move is an executive order that the bank can carry out without the risk of civil liability.
The Deputy Prime Minister says that crowdfunding platforms and payment service providers are not exempted from the existing anti-money laundering and terrorist financing rules. All forms of transactions, like digital currencies, are part of the new changes in regulations.
Why The Emergency Rule Matters
Tallycoin, a crowdfunding platform, was used to raise more than 20BTC estimated to be $1 million for the protesting truckers who were against the decision of the government to put restrictions due to Covid 19 in the country.
The protest, as reported, is supported by donations from various individuals and groups who identify with the aggrieved truck drivers. People mostly donate cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. The government is concerned about the donation fuelling and prolonging the protest. After exhausting all means at its disposal to dispel the ongoing protest, the government resorts to invoking the emergency rule act to justify its decision.
The coming of the emergency rule means that any crowdfunding platform and payment service providers who receive donations in fiat currency or cryptocurrency is liable to prosecution in court by the government; the banks are also mandated to act by the power vested on them by the government. Accounts of suspected individuals are to be frozen until the government takes further action.
The impact of the emergency rule in Canada will significantly affect the circulation of cryptocurrencies in the country. Even businesses that use cryptocurrencies for transaction purposes without dealing with the protesting group will be affected.
On the whole, the cryptocurrency industry might also see the move by Canada as a setback for its continuous growth in the Americas, bearing in mind that Canada is one country where the digital token has enjoyed a relative working environment due to favorable government policy.
