Decluttering Canada’s Emergencies Act And Its Tough Stance on Crypto Transactions

Trudeau is the first prime minister to employ this rarely used provision, which grants the government temporary powers it does not ordinarily have. The new measures, according to Trudeau, will be ‘geographically specific and targeted only where they are needed.’ They'll be ‘time-limited’ as well. The Prime Minister stated,

Although the Emergencies Act allows for the military to be called in, Trudeau has stated that he has no plans to do so at this time.

All These To Broaden Canada's Anti-Money Laundering and Counter-Terrorist Financing Rules

Anti-money laundering and counter-terrorist financing law in Canada are being broadened to encompass crowdfunding platforms and payment service providers. According to Deputy Prime Minister and Minister of Finance Chrystia Freeland, these reforms apply to all types of transactions, including digital assets like bitcoin.

According to estimates, the Tallycoin bitcoin campaign raised more than 20 Bitcoin for the drivers, which amounts to over $1 million. The organizers have pulled down the funding page and are inviting everyone to 'stay tuned' for the following stages. The spokesperson said:

"All crowdfunding platforms and the payment service providers they use now must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and must report large and suspicious transactions to FINTRAC. As the situation is new and quickly evolving, the RCMP is not in a position to offer further information on crowdfunding through cryptocurrency at this time."

According to a letter obtained by the Counter Signal, 29 of the 34 crypto addresses are Bitcoin addresses and two are Ethereum addresses. Cardano, Monero, and Litecoin addresses are the last three.

Banks Receive Letters

The RCMP allegedly sent a separate type of letter to traditional financial institutions, like banks. According to the Globe and Mail, which cited a source who examined the document, the letters to banks name roughly 20 people that the police have identified as being involved in actions related to the Freedom Convoy protests. The letters include photographs and profiles of the individuals, some of whom are said to be the key organizers of the protests.

The Canadian Bankers Association (CBA) stated that the RCMP had sent letters to banks regarding 'designated persons.' Financial institutions must now provide the RCMP or the Canadian Security Intelligence Service with certain customers' banking information and transaction records. They can, however, choose whether to freeze accounts or turn off services.

To deal with the Freedom Convoy rallies in Ottawa, Canadian Prime Minister Justin Trudeau invoked the Emergencies Act. The Act grants law enforcement more authority to deal with ongoing blockades and demonstrations against pandemic restrictions. Financial services providers can 'immediately freeze or suspend the account of an individual or business connected with these illegal blockades without a judicial ruling,' according to the law.

Traditional Transactions Included

The Canadian government made it clear that cryptocurrencies would be targeted alongside ordinary commerce. Freeland said this week that the Emergencies Act 'cover[s] all sorts of transactions, including digital assets such as cryptocurrency.'

Civilian protests are increasingly relying on the use of bitcoins for donations. Volunteer groups and non-governmental organizations in Ukraine saw a 900% rise in Bitcoin financing last year compared to the previous year, likely due to the increased Russian military presence on its borders. 

Canada Is One of the Top Crypto Hotspots in the World

Canada, which has taken regulatory steps to accept virtual money, has a sizable Bitcoin ecosystem. QuadrigaCX, the collapsed cryptocurrency exchange that lost $180 million in client cash following the claimed death of its founder, is based in Vancouver. In Vancouver and the surrounding suburbs, there are more than fifty merchants who take bitcoin, as well as 221 places to buy bitcoin. On October 29, 2013, the world's first bitcoin ATM opened its doors at Waves Coffee House in downtown Vancouver.

Canada is one of the most cryptocurrency-friendly countries in the world due to the government's favorable attitude toward cryptocurrency adoption. According to recent cryptocurrency news, 'Canadian investment management 3iQ stated The Bitcoin Fund, for which it first filed a prospectus back in October, began trading on the Toronto Stock Exchange(TSX).' Aside from that, Toronto is known as the most crypto-friendly city, with over 200 crypto ATMs scattered throughout the city.

Is Tracing Crypto Transactions Easy? No!

Cryptocurrencies lack a centralized authority; no single person, organization, or country can control the supply of Bitcoin. However, most countries do not mind 'bartering' goods. A golden lamp may be exchanged for three silver plates. A bitcoin might be exchanged for six laptops from a buddy in the same way. The problem is that identifying and valuing barter transactions is complicated, making it impossible to assess sales or income taxes. As a result, such transactions are pushed into the informal economy, often known as the black money market. Therefore, the Canadian PM has to understand that it is not going to be a good cakewalk throughout this journey.