The federal government of Canada has used its Emergency Act for the first time, focusing on crowdfunding platforms and crypto payment providers linked to them. Canada’s Prime Minister, Justin Trudeau, has declared a state of emergency in response to ongoing blockades of COVID-19 measures.
The federal government announced that it was expanding AML and terror-financing rules to include crowdfunding and payment providers linked to it — including cryptocurrency.
In response to ongoing blockades against COVID-19 restrictions, Canada’s Prime Minister Justin Trudeau has invoked the country’s Emergency Act for the first time.
The act requires crowdfunding platforms and payment service providers associated with them, including cryptocurrency, to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). At this point, it is unclear whether the emergency act will have a long-term impact on crypto payment providers.
Finance Minister Chrystia Freeland announced Monday that the federal government is broadening anti-money laundering and terror-financing rules to include crowdfunding platforms and payment providers.
“These changes apply to all types of transactions, including digital assets such as cryptocurrencies,” Freeland explained. “The illegal blockades have highlighted the fact that the Proceeds of Crime and Terrorist Financing Act does not fully capture crowdfunding platforms and some of the payment service providers they use.”
As of Monday, all crowdfunding platforms and associated payment providers must report large and suspicious transactions to the country’s financial regulator in the same way that banks are required to, according to Freeland.
The act, which was passed by the Canadian parliament in 1988, gives the federal government temporary additional powers to respond to public welfare, public order, international, and war emergencies.
The act is intended to counter “illegal” protests over Canada’s COVID-19 restrictions. It was enacted in direct response to the ongoing trucker blockades, which have caused significant disruption to cities including the country’s capital, Ottawa.
Blockades caused by large trucks lined up on the country’s highways, as well as trading corridors with the US, can be seen in cities across Canada. The blockades are also causing supply-chain bottlenecks across the country, affecting the Canadian economy.
The protests have been condemned by both the Canadian Trucking Alliance and the International Brotherhood of Teamsters. It was “not how disagreements with government policies should be expressed,” according to the Teamsters.
During a press conference on Monday, Trudeau stated, “It is now clear that there are serious challenges to law enforcement’s ability to effectively enforce the law.” “The consequences on their lives for continuing to endanger the lives and livelihoods of other Canadians, for continuing to violate our laws, will become increasingly severe.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.