Canada invokes 'emergency bill' to target crowdfunding and cryptocurrencies

Canadian Prime Minister Justin Trudeau invoked the Emergencies Act, which gave him the power to freeze the bank accounts of protesting group Freedom Convoy and monitor "large suspicious transactions," including cryptocurrencies.

Deputy Prime Minister Chrystia Freeland said at a news conference on the 14th that the tactical adjustment to the protest team expanded the scope of terrorism financing rules. It targets "crowdfunding platforms and the payment service providers they use".

"These changes cover all forms of transactions including digital assets such as cryptocurrencies."

Protesters have raised a combined $19 million through two fundraising platforms, GoFundMe and GiveSendGo. However, those funds were unable to reach Freedom Convoy, leading some to organize a funding round using Bitcoin.

The HonkHonk Hodl group raised 22 BTC worth nearly $1 million through the Tallycoin BTC fundraising platform. HonkHonk Hodl shut down their Tallycoin page on February 15th after raising more than their fundraising goal. Those funds are still expected to be distributed to protesters.

A Tallycoin bitcoin fundraiser in support of the Canadian protest team Freedom Convoy has been voluntarily shut down by the organizers. A known private key holder has transferred funds to a new key holder.

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

GoFundMe worked with Canadian officials and refunded donors, but GiveSendGo experienced a breach that exposed the "identities of tens of thousands of people who donated to Freedom Convoy," according to The Daily Dot writer Michael Thalen. There is no word yet on where Freedom Convoy's funds will go.

A document containing the names of tens of thousands of Freedom Convoy donors was also allegedly leaked.

More details are being verified.

— MikaelThalen (@MikaelThalen) February 14, 2022

Quebec Premier Francois Legault said before Trudeau's announcement that invoking the Emergency Act could "add fuel to the fire", BBC News reported. However, Trudeau insisted that emergency powers would be used "temporarily and in a very specific way".

The Canadian Civil Liberties Association said today that Canada's prime minister was overstepping his authority by invoking the Emergency Act. It said "the federal government has not met the necessary threshold to invoke the Emergency Act."

"This law sets a high and clear bar, and for good reason: The bill allows the government to bypass ordinary democratic processes. That bar has not been met."

At this time, it is unclear which specific payments will be blocked. In a press release, Freeland noted only that all crowdfunding platforms are required to report "large suspicious transactions" to Canada's Financial Transactions and Reports Analysis Center (Fintrac).

Cryptocurrency proponents, such as Pylon Holding Company founder Preston Pysh, have expressed sarcastic delight at the Freedom Convoy's apparent likelihood of adoption. Today, Pysh responded to Freeland on Twitter, “This is an ad for Bitcoin.”

Things started to get tricky. What a great ad for Bitcoin.

Bitcoin = Freedom

do not forget.

— PrestonPysh (@PrestonPysh) February 14, 2022

Bitcoin price is up 2.6% in the past few hours, trading at $43,667 at the time of writing.

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