![Crypto accounts can be confiscated](https://www.apparata.nl/files/2022/02/Crypto-20-2-2022-919x612.jpg)
Your digital coins are in your crypto accounts on trading platforms and can be confiscated by the government. Or not?
Last week there was a lot of commotion about the ‘freezing’ of digital currency accounts in Canada. This government action is linked to the Canadian truck drivers’ Freedom Convoy. But is this possible?
crypto accounts
For it must be emphasized that decentralized cryptocurrencies such as Bitcoin and Ethereum cannot be frozen directly within the network. However, the Canadian government may mark specific digital currency addresses. And going even further, by incorporating centralized entities such as crypto exchanges and payment processors to ask to freeze the money. So they ask, but they can’t do it themselves.
Last week, Canadian Prime Minister Justin Trudeau invoked the country’s Emergencies Act and introduced Canada’s terrorist financing policy to block donations of cryptocurrencies. Trudeau and the government did this to quell the protesters occupying the streets of Ottawa.
Addresses of protesters
The government of Canada managed to get Gofundme to shut down the Freedom Convoy fundraiser. In addition, it also flagged 34 crypto addresses, which were allegedly associated with crypto fundraisers. Canada’s police have sent letters to banks and crypto-asset exchanges. It stated that companies were “ceasing to facilitate transactions” with the above highlighted addresses.
For example, it is impossible to freeze a Bitcoin address and make it useless for its owner. Ultimately it is possible, but with violence or the threat of imprisonment so that the crypto owner gives the private keys. Let’s hope it doesn’t come to that.
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