A significant ruling from the Federal Court of Canada has declared the government's use of emergency law to freeze cryptocurrency donations to protesters as unconstitutional. This landmark decision emerged from the events of February 2022, when Prime Minister Justin Trudeau's administration leveraged the law to impede the flow of funds, including digital currencies, to truckers protesting COVID-19 mandates.
The "Freedom Convoy" protests, which involved truckers using their vehicles to blockade streets in Ottawa, were in opposition to a mandate requiring full COVID-19 vaccination for truck drivers crossing the Canada-United States border. During this time, the government contended that invoking the Emergencies Act was necessary to address what it deemed an illegal occupation.
Justice Richard Mosley, delivering the verdict, stated that the situation did not constitute a national emergency that justified invoking the Emergencies Act. He emphasized that the government cannot use the act for convenience or as a superior alternative to other available tools. This ruling came after challenges from organizations like the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, who argued the action was both unnecessary and unconstitutional.
The court's decision is being hailed as a precedent-setting judgment for future governments. During the protests, cryptocurrency played a significant role in funding the truckers, with the HonkHonk Hodl group on Tallycoin, a Bitcoin blockchain-based crowdfunding platform, raising over 22 Bitcoin, valued at approximately $925,000 at the time. The Christian crowdfunding site GiveSendGo also raised over $8 million, including undisclosed amounts in crypto. However, Canadian authorities later froze bank accounts linked to GiveSendGo donations.
Crypto executives, including Kraken founder Jesse Powell, criticized the Canadian government's freezing of digital assets. Finance Minister Chrystia Freeland has announced that the government will appeal the ruling.
This case underscores the complex interplay between government regulation, digital assets, and constitutional rights, highlighting the evolving landscape of cryptocurrency in the context of political and social movements.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
