Canadian Court Sets Precedent: Unconstitutional to Freeze Crypto in ‘Freedom Convoy’ Protests

• Canadian Federal Court rules freezing protest funds unconstitutional; sets precedent in civil rights and crypto.
• Cryptocurrencies key in funding “Freedom Convoy”; government to appeal decision impacting balance between security and freedom.

Canada’s recent Federal Court decision has shaken up the cryptocurrency and civil rights landscape in the country. By ruling as unconstitutional the emergency law that allowed the Canadian government to freeze funds and cryptocurrencies donated to protesting truckers, Justice Richard Mosley has set a significant precedent in the balance between national security and individual liberty.

The Federal Court of Canada issued a verdict calling an emergency law that gave the Canadian government the authority to intercept the flow of funds and cryptocurrencies directed to protesting truckersirrational and unconstitutional .

In a Jan. 23 ruling, Justice Richard Mosley concluded:

“There was no national urgency to justify the activation of the Emergency Act and, therefore, the decision to do so was irrational.”

Now, let’s back up a bit. In February 2022, Justin Trudeau’s government first used this law to freeze funds, including cryptocurrencies, donated to truckers protesting COVID-19 restrictions.

This group, known as the “Freedom Convoy,” paralyzed the streets of Ottawa in protest against mandatory vaccinations for truck drivers crossing the Canada-U.S. border. At the time, the government justified its decision by arguing that the protests constituted an illegal occupation that required an immediate response.

However, organizations such as the Canadian Civil Liberties Association (CCLA) and the Canadian Constitutional Foundation challenged the application of this emergency law, arguing that it was unnecessary and violated the constitution.

Judge Mosley’s decision, which underscores the importance of not invoking the Emergencies Act for convenience or as a first resort, supports this perspective and sets a critical precedent for future government actions.

In the context of cryptocurrencies, this situation takes on particular relevance. The funding of the trucker protests in 2022 showed the power and independence of cryptocurrencies as a fundraising tool.

Platforms such as Tallycoin, based on the Bitcoin blockchain, and crowdfunding sites such as GiveSendGo, played a crucial role in raising funds for the truckers, with millions of dollars at stake .

Despite efforts by Canadian authorities to freeze bank accounts linked to GiveSendGo donations, the decentralized and hardly traceable nature of cryptocurrencies presented a challenge for government control.

The case highlights a broader debate about privacy, freedom of expression and the ability of cryptocurrencies to circumvent traditional financial controls. Leading figures in the crypto industry, such as Jesse Powell, founder of Kraken, have condemned the Canadian government’s freezing of digital assets, highlighting the tension between government regulation and financial freedom.

As the Canadian government prepares to appeal the decision, the crypto community and civil liberties advocates are watching closely. The resolution of this case will not only affect the future of protests and the use of emergency laws in Canada, but will also influence the global debate on cryptocurrency regulation and the balance between security and freedom in the digital age.