Canada’s Regulator Asks Crypto Exchanges to Stop Promoting Self-Custodial Wallets

The truckers’ association in Canada is currently protesting against the authoritarian policies of the government. The protestors called the Freedom Convoy 2022 are thought to receive funds and donations in the form of cryptocurrencies. Prime Minister, Justin Trudeau recently invoked the emergency action to allow the state agencies to freeze financial aid to the convoy without any legal accountability.

This step has made the issue even bigger and attracted the attention of the cryptocurrency exchange platforms. Kraken and Coinbase’s CEOs took to Twitter to warn the crypto traders on the platform to be careful before many donations and use self-custodial digital currency wallets withdrawals before doing so.

Reaction of Canadian Police Department

The RCMP or Royal Canadian Mounted Police is currently looking into the possibility of suing Kraken and Coinbase CEOs for their recent tweets. Kristen Rose the manager of OSC or Ontario Superior Court recently told the media that the agency is aware of the spread of alternative suggestions spread on Twitter and is looking into this matter.

It is worth mentioning that OSC issued Mareva Injunctions to a self-custodial cryptocurrency provider called Nunchuk. The defendants aired a response claiming that by design the platform does not record any transaction history of the users other than email addresses. Ergo, the management couldn’t freeze or link any accounts with the Freedom Convoy.

Many people believe that the Canadian government is acting like an authoritarian state in its reaction towards the Freedom Convoy. On the other side of the spectrum, the people believe that truckers are blocking the biggest supply chain route of Canada incurring millions of dollars damage to the economy.

The reaction of Coinbase and Kraken is the response of the corporations acting to protect and maintain their user base. In case of a freeze injunction, all the accounts that are linked to the Freedom Convoy will be blocked. RCMP has already issued cease and desist order to all 34 digital wallet providers under FINTRAC to stop interacting with the Freedom Convoy.

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