Canada tightens fundraising in cryptocurrencies amid protests

Prime Minister Justin Trudeau has invoked the Emergencies Act to address the protests across the country. Among its provisions are measures that will complicate fundraising in cryptocurrencies.

I want to be very clear about what we are – and are not – doing by invoking the Emergencies Act, and how taking this step will help get the situation under control. In case you missed our announcement earlier today, watch this: pic.twitter.com/htGmZH09Jd

— Justin Trudeau (@JustinTrudeau) February 15, 2022

Since late January, protests have erupted in Canada against anti-COVID restrictions, initiated by truckers. The protesters blocked central Ottawa, and also blocked the bridge linking Detroit, USA, and Windsor, Canada. CNN reported that traffic there resumed by the evening of February 13.

Initially, protesters used GoFundMe and GiveSendGo to obtain donations. However, in early February the first service shut down the fundraiser and announced refunds.

To simplify the process for our users, we will be refunding all donations to the Freedom Convoy 2022 fundraiser. This refund will happen automatically—you do not need to submit a request. Donors can expect to see refunds within 7-10 business days.

— GoFundMe (@gofundme) February 5, 2022

On February 11, the HonkHonk Hodl announced about raising 21 BTC (almost $929,000 at the time of writing) via the Tallycoin platform and paused the fundraising.

The Tallycoin bitcoin fundraiser supporting the Canadian Freedom Convoy protests has been voluntarily shutdown by organizers. Known private key holders have transferred funds to new key holders. pic.twitter.com/9cgwlaroZ1

— no bullshit bitcoin (@nobsbitcoin) February 14, 2022

The Emergencies Act was enacted in 1988, but has never before been invoked. It gives the government broad powers to restore order and allows banks to freeze the personal accounts of anyone linked to or supporting the protests without a court order.

According to Trudeau, the emergency measures will be time-limited and applied only where necessary. The Prime Minister ruled out the use of armed forces.

At a February 14 press conference, Finance Minister Chrystia Freeland said the law also targets “crowdfunding platforms and payment-service providers, […] all forms of transactions, including digital assets such as cryptocurrencies.”

Oh my fucking goodness: Canada’s Deputy Prime Minister says that, as part of the Emergencies Act, they are broadening Canada’s “Terrorist Financing” rules so that they cover crowdfunding platforms and cryptocurrencies to the Canadian Freedom Convoy pic.twitter.com/35bXSu4k6j

— Greg Price (@greg_price11) February 14, 2022

In particular, the document broadens the scope of anti-money laundering and counter-terrorism financing rules. Crowdfunding platforms must report “large and suspicious transactions” to FINTRAC.

Freeland’s statement was criticized by Alex Gladstein, the strategy director of the Human Rights Foundation. Preston Pysh, founder of Pylon Holding Company, called the Canadian authorities’ actions “an advertisement for Bitcoin.”

And there it is…things are starting to get spicy. What an advertisement for #Bitcoin.

Bitcoin = freedom

And don’t forget it. https://t.co/EEPh8RBk0H

— Preston Pysh (@PrestonPysh) February 14, 2022

“Bitcoin = freedom. And don’t forget it,” he stressed.

As a reminder, 67% of Canadians surveyed by Capterra said they were willing to receive salaries in cryptocurrencies.

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