Kraken flags possibility of pre-trial asset freezes

Kraken chief executive Jesse Powell told users concerned about authorities freezing digital assets without a court order that they should store funds in non-custodial wallets, commenting on the situation in Canada.

Due process is for plebs. Might makes right in Canada. If someone dissents, you just confiscate their wealth, revoke their licenses, exclude them from the financial system and kill their pets. No need to debate the law, policy or even rights when you have a monopoly on violence. https://t.co/ksx9JpRwSg

— Jesse Powell (@jespow) February 17, 2022

“Procedural norms are for plebeians. In Canada, might is right. If someone disagrees, you simply confiscate their wealth, revoke their license and exclude them from the financial system […]. There is no need to discuss the law, policy or even rights when you have a monopoly on violence,” Powell wrote.

Earlier, Prime Minister Justin Trudeau invoked the Emergencies Act of 1988, which gives the government broad powers to restore order and allows banks to freeze personal accounts of those connected with or supporting demonstrations, without a court order.

Finance Minister Chrystia Freeland said that the aforementioned law extends to “to crowdfunding platforms and payment-service providers, … all forms of transactions, including digital assets such as cryptocurrencies.”

One user asked Kraken’s chief whether the company would comply with an order to freeze assets without a court decision. Powell said that it would have to.

100% yes it has/will happen and 100% yes, we will be forced to comply. If you’re worried about it, don’t keep your funds with any centralized/regulated custodian. We cannot protect you. Get your coins/cash out and only trade p2p.

— Jesse Powell (@jespow) February 18, 2022

“100% yes, this has happened or will happen, and 100% yes, we will be forced to comply. If you’re worried about it, don’t store funds on centralized or regulated platforms. We can’t protect you. Withdraw your cryptocurrency and trade only P2P,” he wrote.

Powell backed Binance CEO Changpeng Zhao. He stressed that his company is in a similar position and advised users not to use centralized exchanges if there is a risk of asset freezes.

In another thread Zhao said that “even he” uses Trust Wallet in conjunction with a Binance account.

Even I use both Trustwallet and Binance.

— CZ 🔶 Binance (@cz_binance) February 18, 2022

Statements by authorities about possible pre-trial freezing of accounts have worried users of traditional financial institutions. As the community noted, Canada’s banking infrastructure is currently heavily overloaded — reports of widespread outages in banking apps.

Well people are going to take their money out of banks when the government says they can freeze your account. That’s why #bitcoin is so powerful. It’s all decentralized and NO ONE can freeze you from exchanging your crypto or seize your assets. https://t.co/iFuBQ7JokQ

— Jonny Anti-Imperialist ✌ (@JonathanMayorca) February 17, 2022

“When the government says it can freeze your account, people will start taking money out of banks. That’s why Bitcoin is so powerful. All of this is decentralized; no one can confiscate your assets or prevent you from trading,” wrote a user going by the handle JonathanMayorca.

In Canada, 67% of respondents in a Capterra said they were willing to be paid in cryptocurrency.

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