Ottawa’s Emergencies Act cracks down on convoy crypto. Experts warn that’s not easy
Global News
The federal government's latest emergency orders seek to cut off the flow of crypto assets to the so-called "Freedom Convoy," but experts say that's no easy feat.
The federal government’s move to invoke the Emergencies Act marks an attempt to cut off funds directed to the “Freedom Convoy,” including new cryptocurrency channels.
But experts say fundraising through the decentralized digital assets can be difficult to pin down and worry that attempts to crack down on crypto could have long-lasting ramifications on fintech innovation.
Convoyers, who have set up camp for 20 days in Ottawa and established satellite protests at border crossings across Canada, have turned to cryptocurrency after crowdfunding platforms such as GoFundMe shut off their access to funds after the demonstrations were deemed “illegal” by government and police.
Benjamin Dichter, one of the principal organizers of the so-called “Freedom Convoy,” said in a Facebook livestream last week that as GoFundMe began to withhold funds from their cause, he floated the idea on Twitter of using Bitcoin “as an alternative,” citing its decentralized nature as fitting for the convoy’s anti-mandate ethos.
He said he was “shocked how quickly” he started receiving messages from Bitcoin enthusiasts keen to set up fundraising platforms using the digital currency.
Dichter estimated that more than US$800,000 had been raised in Bitcoin at the time of speaking, with other convoy-related accounts putting estimates even higher.
Details of the federal government’s Emergencies Act released last Tuesday night show that crowdfunding and cryptocurrency platforms, in addition to traditional banking institutions, are included in the federal government’s crackdown on companies providing financial services to individuals believed to be furthering “illegal blockades.”
While the act empowers banks to freeze or suspend accounts believed to be linked to the blockades without a court order, the matter of taking Bitcoin or some other cryptocurrency is infinitely more complex, given its decentralized nature.
