Canadian Court Declares Government's Freeze on Crypto Donations Unconstitutional

A Canadian court has declared the use of emergency powers by the government to freeze cryptocurrency donations for truckers protesting COVID-19 restrictions as unconstitutional. The court, responding to the government's action during the "Freedom Convoy" protests in February 2022, found the measure unreasonable and lacking lawful justification.

The court asserted that the situation did not constitute a national emergency, marking the use of the Emergencies Act as unnecessary. The Canadian Civil Liberties Association hails this decision as a landmark, emphasizing that the Emergencies Act should only be employed as a last resort, highlighting the significance of judicial oversight.

Despite Finance Minister Chrystia Freeland's plan to appeal, this ruling underscores the growing importance of legal scrutiny in governmental measures involving cryptocurrencies. The judgment signifies a stance against the unrestricted use of emergency powers in freezing financial assets, including cryptocurrencies, particularly in situations not meeting the criteria of a national emergency.

Amidst ongoing legal challenges and a shifting government stance on cryptocurrency donations, the court's decision could lead to increased scrutiny of Bitcoin's role in funding protests, potentially resulting in fluctuations in its price. This ruling emphasizes the need for a careful balance between governmental powers and individual liberties in the context of evolving cryptocurrency regulations.