Crypto Payments Firms Face New Restrictions Under Canada’s Blockade Crackdown

Canada’s federal government has invoked its Emergencies Act for the first time, turning the focus on crowdfunding platforms and crypto payment providers linked to them


The Center Block and the Peace Tower in Parliament Hill, Ottawa, Canada. Credit: Shutterstock


key takeaways

  • Canada’s Prime Minister Justin Trudeau has invoked the country’s Emergencies Act in direct response to ongoing blockades against Covid-19 measures
  • The federal government said it was broadening anti-money laundering and terror-financing rules to cover crowdfunding and payment providers linked to them — including crypto

Canada’s Prime Minister Justin Trudeau has invoked the country’s Emergencies Act for the first time in a response to continuing blockades against Covid-19 restrictions.

Under the act, crowdfunding platforms and payment services providers linked to them, including crypto, must now register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). It is unclear at this stage whether the emergency act will impact crypto payment providers in the long term.

Canadian Finance Minister Chrystia Freeland said Monday the federal government was broadening anti-money laundering and terror-financing rules to cover crowdfunding platforms and payment providers they use.

“These changes cover all forms of transactions including digital assets such as cryptocurrencies,” said Freeland. “The illegal blockades have 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 Terrorist Financing Act.

As of Monday, all crowdfunding platforms and accompanying payment providers must report large and suspicious transactions to the country’s financial regulator in the same way banks are obligated, Freeland said.

The Emergencies Act, passed into law via the Canadian parliament in 1988, grants the federal government temporary additional powers to respond to public welfare, public order, international and war emergencies.

Invoked as a direct response to the ongoing trucker blockades, which have caused major disruption to cities including the country’s capital Ottawa, the act is designed to counter “illegal” protests over Canada’s Covid-19 restrictions.

Scenes across Canadian cities include blockades caused by large trucks lined up in the nation’s highways and trading corridors with the US. The blockades are also causing supply-chain bottlenecks across the country that are affecting Canada’s economy.

Both the Canadian Trucking Alliance and the International Brotherhood of Teamsters have condemned the protests. The Teamsters said it was “not how disagreements with government policies should be expressed.”

“It is now clear that there are serious challenges to law enforcement‘s ability to effectively enforce the law,” Trudeau said during a press conference on Monday. “The consequences on their lives, for choosing to continue to endanger the lives and livelihoods of other Canadians, to continue to violate our laws, are going to be more and more extensive.”

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png


Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.


Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121


Oklahoma’s new crypto bill will go into effect in November of this year


The deposits hit a $20 million cap in just 45 minutes


Twelve Democratic Senators voted in favor to pass the resolution Thursday

article-image is “aware” that bonding curve contracts on were exploited, and has since paused trading


Some investment pros are mulling crypto allocations between 1% and 10% and seeking ex-BTC exposure for interested clients