Canadian Judge Overrules Freeze On Protester’s Crypto Donations: Here’s Why
Rescinding Ban On Crypto Donation
A recent Federal Court of Canada decision declared that a hurriedly adopted rule authorizing the government to stop financial assistance, including Bitcoin donations, to truck drivers protesting is unconstitutional. The ruling made by Justice Richard Mosley revealed the absence of a real national emergency that required the Canadian government to apply the Emergencies Act.
The government’s commencement of the Act in February 2022 resulted in the forfeiture of funds donated to transporters opposed to the stringent COVID-19 restrictions. In its conclusion, the court stated that this decision violated constitutional standards.
Amid the deadly COVID-19 pandemic, the demonstrators known as the “Freedom Convoy” purposely impeded traffic movement in Ottawa, the country’s capital, by clogging the streets with trucks. The protest was intended to show their opposition to a policy requiring truck drivers crossing the Canada-United States border to be fully vaccinated.
As a result, the demonstrators received widespread financial support from their allies across the Atlantic. To reduce the financial support received by the demonstration, Prime Minister Justin Trudeau’s administration enacted the Emergencies Act for the first time.
Defending The Emergency Act
The government defended using the Emergencies Act during the period by claiming that the demonstrations constituted an illegal area seizure. However, several organizations, notably the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, argued against this course.
These organizations maintained that the government’s imposition of a halt to the transfer of funding under the Emergency Act was unjustified and violated the Constitution. They also argued that such measures were ineffective.
The CCLA lauded the court’s judgment and stated, “It establishes a precedent that is of the utmost importance and will have far-reaching consequences for all subsequent governments.” Justice Mosley stressed that using the Emergencies Act should not be done solely for expediency or because it appears to be more successful than other measures.
Meanwhile, the Minister of Finance, Chrystia Freeland, announced that the government intends to appeal the verdict.
Cryptocurrencies And The 2022 Trucker Protest
The 2022 truckers’ rallies were heavily financed through Bitcoin, with estimates putting the amount received by activists at millions of dollars. In February 2022, GoFundMe placed a cap to limit the accumulation of donations after the account dedicated to the protests had received more than $9 million.
Undeterred, organizers shifted their fundraising efforts to Tallycoin, a crowdsourcing tool based on the Bitcoin network. Furthermore, the HonkHonk Hodl collective successfully bought more than 22 BTC.
GiveSendGo, a Christian crowdfunding platform, also contributed to the transporters’ behalf, raising over $8 million and becoming a popular donation tool. This total included unrealized amounts of cryptocurrency. It is worth noting that Canadian authorities seized bank accounts linked to donations made through GiveSendGo.
During this time, several prominent figures in the Bitcoin industry, including Jesse Powell, the founder of Kraken, expressed their displeasure with the authorities’ decision.
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