- The CEOs of Kraken and Coinbase exchanges tweeted recently on the use of non-custodial wallets to possibly circumvent sanctions in Canada, and now authorities are investigating them.
- Canadian authorities have been working on cracking down on crypto transactions to the truckers who have been protesting the COVID-19 mandates imposed by Justin Trudeau.
Is promoting non-custodial wallets on Twitter in violation of Canadian sanctions on cryptocurrency donations to truckers who have been in protest for months now? This is what authorities are investigating, with the CEOs of two of the largest crypto exchanges, Kraken and Coinbase caught in the controversy.
Canadian truckers have been protesting the COVID-19 mandates imposed by Prime Minister Justin Trudeau’s government, with vaccine requirements being at the heart of the protest. The standoff has continued for months, with hundreds of people arrested. To push the truckers off the streets, Trudeau has been targeting their funding channels, and the last frontier he targeted was crypto.
Crypto fans globally have criticized the government’s move, with many urging Canadians to turn to non-custodial wallets which the government can’t seize. Canadian authorities have, however, taken an issue with two of the crypto world’s foremost leaders for promoting these wallets.
On February 15, Coinbase CEO Brian Armstrong tweeted:
Concerning to see stuff like this happening in any country, especially such an economically free place like Canada. Self-custodial wallets are important!
Armstrong further promoted the Coinbase Wallet as a possible means of evading the government sanctions on Canadian truckers.
Still, on February 15, Kraken CEO Jesse Powell touted non-custodial wallets, reminding the crypto community to avoid custodial wallets as he believes freeze orders are coming soon on such wallets.
“captured” being the key word. Crowdfunding platforms now regulated under the Canadian Terrorist Financing Act. Do you see where this is going? Please do not fund causes directly from custodial wallets. I’m sure freeze orders are coming. Withdraw to non-custodial before sending. https://t.co/OBDFbrUpBy
— Jesse Powell (@jespow) February 15, 2022
These tweets by the two crypto veterans may land them in trouble with Canadian authorities. As local outlets have reported, the Ontario Securities Commission (OSC) took issue with these tweets and reported the two to the Royal Canadian Mounted Police (RCMP).
The RCMP is now investigating whether the two leaders violated the sanctions put in place by the government.
Kristen Rose, the OSC’s manager of public affairs confirmed the escalation of the case to the police, stating, “We are aware of this information and have shared it with the RCMP and relevant federal authorities.”
Non-custodial wallets allow users to remain unilaterally in charge of their crypto. This is because, unlike custodial wallets, they are not domiciled with an exchange or a wallet company and the user can access them independently. As such, authorities can’t crack down on non-custodial wallets.
Also Read: Canada invokes emergencies act to track fiat and crypto transactions to the freedom convoy
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