Canadian Court Deems Freeze on Crypto Donations During Protests Unlawful
A federal judge in Canada has issued a ruling against the government’s use of emergency powers to freeze assets, including cryptocurrencies and other digital assets, during the trucker’s protests in early 2022. Justice Richard Mosley of the Federal Court of Canada declared that there was no national emergency that justified the application of the Emergencies Act. He described the decision as unreasonable and unconstitutional, stating that the act should only be utilized when all other alternatives had been exhausted.
Prime Minister Justin Trudeau and his government invoked the Emergencies Act in February 2022 to freeze funds, including crypto, that had been donated to truckers protesting COVID-19 restrictions. The protesters, known as the Freedom Convoy, used trucks to block streets in Ottawa, protesting against vaccine mandates for truck drivers crossing the Canada-United States border.
The government argued that the use of the Emergencies Act was necessary because the protests were considered an illegal occupation. However, the recent court ruling challenged this justification, asserting that such an act should only be used as a last resort when all other options have been exhausted.
Several groups, including the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, expressed their disapproval of the government’s use of the emergency law. Finance Minister Chrystia Freeland also announced that the government intends to appeal the decision.
The trucker protests in 2022 saw a significant role played by cryptocurrencies in terms of support. It is estimated that the protesters received millions of dollars through popular platforms, although the exact amount remains unclear. During the protests, GoFundMe, a well-known crowdfunding organization, froze over $9 million in donations. As a result, the organizers shifted their funding to Tallycoin, another crowdfunding platform built on the Bitcoin blockchain. The HonkHonk Hodl group raised over 22 Bitcoins, valued at around $1 million.
The court’s ruling highlights the misuse of emergency powers and the influence of cryptocurrencies in prominent social movements.
Tags: Crypto Regulations