Canada includes crypto in AML rules, BTC rallies
Updated
Bitcoin (BTC) was touching $44,000 in London morning trade, after cryptocurrency regulation news from Canada sparked an interesting market reaction.
On Monday, Canada invoked its Emergencies Act, which enables banks to freeze accounts without a court order. The action follows the Canadian government’s efforts to cut donations for the ongoing trucker blockades in the capital. Freedom Convoy 2022 is a trucker-led protest against vaccine mandates. At the end of January, hundreds of vehicles in convoys took to Ottawa to rally at Parliament Hill, the seat of the federal government.
Supporters donated more than $10m for the protesters, but crowdfunding platform GoFundMe distributed only around $1m of the funds, and chose to return the remainder of the money to its donors, citing police reports of violence during the protests.
Bitcoin evangelists began sending BTC to protesters and last week the donations reached 21 BTC, or around $1m.
Emergency powers to freeze accounts
Yesterday, Canada enacted emergency powers, which could now see banks and other financial institutions freezing people’s accounts without requiring a court order.
“First, we are broadening the scope of Canada’s anti-money laundering and terrorism financing rules so that they cover crowdfunding platforms and the payment providers they use. These new rules include digital assets such as cryptocurrencies,” said Canada’s deputy prime minister and minister for finance, Chrystia Freeland.
“The illegal blockades highlighted the fact that crowdfunding platforms and some of the payment service providers they use are not fully captured under the Proceeds of Crime and Terrorism Financing Act.”
Canada’s prime minister, Justin Trudeau, added: “In addition, financial institutions will be authorised or directed to render essential services to help address the situation, including by regulating and prohibiting the use of property to fund or support illegal protests.”
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Unintended consequences
Cryptocurrency advocates and others took to social media to comment on the unintended consequences of Canada’s clampdown. “Thanks Canada,” wrote cryptocurrency analyst Matthew Hyland, showing a chart depicting bitcoin’s value going up following the AML and crime financing announcement.
Commenting on Trudeau’s announcement, Samson Mow, chief strategy officer of blockchain technology provider Blockstream, wrote on twitter: “Basically a Super Bowl ad for bitcoin in Canada.”
“Why we need a decentralised, censor-free, borderless currency: bitcoin. Canada now can freeze or suspend accounts and money without a court order,” economist Marc Friedrich wrote.
BREAKING: Canada is now regulating crowdfunding platforms and crypto currency under the Terrorist Financing Act. pic.twitter.com/SMzVqonD8v
— True North (@TrueNorthCentre) 14 February 2022
Thanks Canada and @JustinTrudeau for fudding #Bitcoin and #Crypto
— Matthew Hyland (@MatthewHyland_) 15 February 2022
Since you labeled it terrorist activity a few hours ago, its been nothing but up!!!???? pic.twitter.com/XMHXpkCeMy
Authoritarian governments are Bitcoin’s marketing team.
— Pomp ???? (@APompliano) 15 February 2022
Top cryptocurrency coins by market capitalisation
As of 10:30 UTC:
- Bitcoin (BTC) added 4.63% to $44,140.
- Ether (ETH) jumped 7.73% to $3,084.
- Binance coin (BNB) shot up 8.03% and was trading at $426.
Winners and losers
- The graph (GRAPH) and gala (GALA) were among the altcoins that benefitted handsomely from the latest rally, adding 18.57% and 18.47% respectively over the past 24 hours.
- Near protocol (NEAR) is down 12.80% week on week, while filecoin (FIL) has lost 12.52% over the same period.
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