Regulator in Canada Warns Crypto Exchanges Not to Promote Self-Custodial Wallets

[bbc.reporter]

This head shaking comedy show called the politicians behind the government of Canada appear to be in the mood to abuse their power. Jesse Powell and Brian Armstrong were free to tell everyone the function and purpose of a bitcoin wallet.

However, it might also appear that everything will not be good for Kraken and Coinbase if Canada create’s a new regulatory framework after what was experienced during the protest.



Tweets from the CEOs of Coinbase and Kraken that advocated self-custody of digital assets are being looked at the by the Royal Canadian Mounted Police for violating sanctions put in place to curb the trucker protests in the country, according to a report from The Logic.

The Ontario Securities Commission (OSC) sent the tweets to the police because it believed that the crypto executives were offering advice on how to evade the sanctions on funds, according to the report.

Late last week, the Ontario Provincial Police and Royal Canadian Mounted Police ordered all regulated financial institutions, including crypto exchanges, to cease trading and freeze the assets of “designated persons” involved in the trucker protests as well as 34 associated crypto wallets.

Read in full https://www.coindesk.com/business/2022/02/22/canadas-osc-warns-crypto-exchanges-not-to-promote-self-custodial-wallets-report/

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1714189969

[_act_]

That is one things about the world, people wants power, governments wants power too and control, because of one thing or the other, they against self custody of cryptocurrencies which is very wrong but right to the governments because they want the total control like fiat because bank accounts can be easily freezed.

Canadian government can only discourage self custody of cryptocurrencies but people that want privacy will always use it, they do not have the cryptocurrencies in custody and it will be difficult for them to make this impossible. Let us be expecting if there will be laws for exchanges to avoid allowing exchange users in Canada not to withdraw to address not registered.

[NeuroticFish]

Tweets from the CEOs of Coinbase and Kraken that advocated self-custody of digital assets are being looked at the by the Royal Canadian Mounted Police for violating sanctions put in place to curb the trucker protests in the country, according to a report from The Logic.

The Ontario Securities Commission (OSC) sent the tweets to the police because it believed that the crypto executives were offering advice on how to evade the sanctions on funds, according to the report.

That's just cheap talk to scare off some unknowing people. Bitcoiners are preaching the "not your keys, not your coins" for too long, with no relation with the truckers.
So whatever they would like to do, they cannot build a solid case against these. And I expect those CEOs have their lawyers too.

On the other hand, this can also lead to lawsuits against Canadian institutions or politicians for intimidation/harassment. (There may be better words for this.) So it may be popcorn time.

[hugeblack]

I don't understand the political situation in Canada but why is the government so tough on the issue of truck drivers? I also don't think those tweets are clear evidence of lawbreaking by CEOs.

it is good that such words come from CEOs because it seems that the regulators are putting pressure on them so they are asking users to withdraw money indirectly to avoid any damage to the reputation of the platforms.

Generally, the accounts of those people may be frozen, but they will inevitably use decentralized exchanges to transfer their money to cash or exchange between cryptocurrencies. This development will prompt more developers to find solutions to current problems.

[batang_bitcoin]

That's the power of centralization and surely Canadian government is doing everything they can for those people of their interest. They can put sanction for anyone that would step in their way if they'll go that far but, it's likely that they have no option that they'll just have to bear with it and follow what regulation they would tell them. Thus, this is an event that everybody is going to look for on how each sides are going to face and counter any sue that is likely to happen.

[dkbit98]

Canadian regulators and government officials are more desperate and pathetic with every move they are making, but I guess they have to listen someone else who is controlling them, because they are all just tiny puppets.
I am promoting self-custodial wallets, I will continue to do it in future, and I think that move from Jesse Powell was spot on and unexpected for me.
I think regulators are scared of people who are using their brains, have their own wallets and real decentralized exchange.

[logfiles]

I don't understand the political situation in Canada but why is the government so tough on the issue of truck drivers? I also don't think those tweets are clear evidence of lawbreaking by CEOs.

The resistance by the truckers against the Mandatory COVID vaccination was becoming a strong movement and It becoming widespread across the country while receiving lots of support morally and financially.

Now we know how politicians hate to lose a grip, so they decided to freeze accounts that contained funds, identified addresses that were holding the Bitcoin donated to the truckers and now want crypto exchanges to freeze the crypto when it's moved to any centralized exchange.

[The Sceptical Chymist]

people wants power, governments wants power too and control

Well some people crave power and control, but all governments not only want both but have it already.  Personally the only thing I want is for the government to downsize and within reasonable limits let people do whatever the hell they want to.  But as it stands, if law enforcement dug hard enough on any single citizen, there's no doubt in my mind that they could find something that would make the citizen a felon--or at least a criminal to some degree.  In other words, there are way too many laws (and the government has way too much power).

This thing with Coinbase, Canada, and the protesting truckers is absolutely flabbergasting to me.  It sounds like the OSC was flexing its muscle for the truckers and those who would support them financially, but even a halfwit would see that the statement from the OSC was pure buffoonery.  I'm not sure where they got the order to put out that statement, but Jesus.  Much respect to Canada, but they've obviously got some politicians who rival the worst of what the US has with respect to intelligence.

Props to the truckers.

[Darker45]

What is this warning all about? Is this now a violation? Is this now interpreted as inciting to sedition or some kind of a crime? Does this mean that by making these statements these personalities are now accessories to the crime?

My goodness! That's what Bitcoin is all about in the first place. Bitcoin is preaching freedom and full ownership. It was created to avoid third-party intermediaries which these banks and other centralized sites and platforms are.

[bbc.reporter]

Tweets from the CEOs of Coinbase and Kraken that advocated self-custody of digital assets are being looked at the by the Royal Canadian Mounted Police for violating sanctions put in place to curb the trucker protests in the country, according to a report from The Logic.

The Ontario Securities Commission (OSC) sent the tweets to the police because it believed that the crypto executives were offering advice on how to evade the sanctions on funds, according to the report.

That's just cheap talk to scare off some unknowing people. Bitcoiners are preaching the "not your keys, not your coins" for too long, with no relation with the truckers.
So whatever they would like to do, they cannot build a solid case against these. And I expect those CEOs have their lawyers too.

On the other hand, this can also lead to lawsuits against Canadian institutions or politicians for intimidation/harassment. (There may be better words for this.) So it may be popcorn time.

Agreed, however the government and financial regulators of Canada might attack this through business licenses and registrations. I am quite certain they will make the applications and registrations very hard for Kraken and Coinbase. We can argue that this is an abuse of their position, their power and it will be the correct argument, however, this is also reality. This type of abuse is everywhere.

[cabron]

I don't understand the political situation in Canada but why is the government so tough on the issue of truck drivers? I also don't think those tweets are clear evidence of lawbreaking by CEOs.

it is good that such words come from CEOs because it seems that the regulators are putting pressure on them so they are asking users to withdraw money indirectly to avoid any damage to the reputation of the platforms.

Generally, the accounts of those people may be frozen, but they will inevitably use decentralized exchanges to transfer their money to cash or exchange between cryptocurrencies. This development will prompt more developers to find solutions to current problems.

They couldn't just give what the truckers want because they don't negotiate with Terrorists.
The developers may even find a way for thier wallets to have an internal mixer itself that's a lot harder for them but because they are into deep in going thru the accounts of these truckers and supporters, the government may really bust doors once they identify Bitcoin supporters linked to the protest. And this exposes what really Trudeau's government is.

[pooya87]

I wonder if all of the weird things the Canadian regime is doing is going to have the opposite effect. Meaning the more they push back and try to prevent bitcoin usage, the more people go towards bitcoin and start using it. I wish there was a way we could measure bitcoin adoption in Canada before and after these events with a couple of months distance.

For example when they warn against "self-custodial wallets", to regular people that should mean these types of wallets are working in providing the censorship resistance characteristic of a currency that they are looking for. And also the fact that bitcoin is the only currency that provides it. So why not adopt bitcoin more...

[bbc.reporter]

I don't understand the political situation in Canada but why is the government so tough on the issue of truck drivers? I also don't think those tweets are clear evidence of lawbreaking by CEOs.

it is good that such words come from CEOs because it seems that the regulators are putting pressure on them so they are asking users to withdraw money indirectly to avoid any damage to the reputation of the platforms.

Generally, the accounts of those people may be frozen, but they will inevitably use decentralized exchanges to transfer their money to cash or exchange between cryptocurrencies. This development will prompt more developers to find solutions to current problems.

They couldn't just give what the truckers want because they don't negotiate with Terrorists.
The developers may even find a way for thier wallets to have an internal mixer itself that's a lot harder for them but because they are into deep in going thru the accounts of these truckers and supporters, the government may really bust doors once they identify Bitcoin supporters linked to the protest. And this exposes what really Trudeau's government is.

However, are they terrorists or is Trudeau acting similar to other dictators in history like Fidel Castro? This is the new joke in social media. They say Trudeau has Cuban blood hehehe.

In any case, are there cryptocoin users from South Korea? Are the rumors true that Upbit stopped withdrawals to noncustodial wallets and withdrawals to other exchanges outside of South Korea? It appears their government has begun imposing the travel rule. I speculate that this might only be the beginning. Other countries might begin imposing their own travel rule soon.