On February 14, 2022, the Government of Canada declared a public order emergency.
The Emergency Economic Measures Order implements the following measures, which come into force immediately and will be in effect for 30 days:
First, the order extends the scope of Canada's anti-money laundering and anti-terrorist financing rules to cover crowdfunding platforms and the payment processors they use. This change covers all forms of transactions, including digital assets such as cryptocurrencies.
As of this order, crowdfunding platforms, and payment service providers that are in possession or control of any funds that are owned, held or controlled by or on behalf of anyone involved in the illegal blockades are required to register with and report suspicious or large value transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Second, the order immediately directs Canadian banks, property and casualty insurance companies, and other financial service providers to temporarily cease providing financial services where the institution suspects that an account - either personal or corporate - is being used to further the illegal blockades. This applies to all funds, including those held in a deposit, chequing, savings, or trading account, and to cryptocurrency wallets, lending products, investment assets, and insurance policies for vehicles used in the illegal blockades.
Third, the government is directing Canadian financial institutions to review their relationships with anyone involved in the illegal blockades and report the assets and related transactions of those involved to the RCMP or CSIS.
Fourth, the order provides federal, provincial, and territorial government institutions with new authority to share relevant information with banks and other financial services providers, if the information will help put a stop to the funding of illegal blockades and illegal activities.
As of now, Canadian financial service providers will be able to immediately freeze or suspend an account of an individual or business affiliated with the blockades without a court order.
Risk Warning: Cryptocurrency is a unregulated virtual notoriously volatile instrument with a high level of risk. Any news, opinions, research, data, or other information contained within this website is provided for news reporting purposes as general market commentary and does not constitute investment or trading advice.
