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The Emergency Situations Act puts banks in jeopardy

Government officials told reporters that if the accounts of people linked to the protests are closed, they should contact their bank, which will take additional steps to verify their identities. According to government officials, trading platforms or other payment providers will also be required by the Emergency Act to report any suspicious transactions made using cryptocurrencies, especially those over $10,000.

The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) routinely flags cryptocurrency payments that are suspected of being used for money laundering or terrorism financing.

While most cryptocurrency transactions are conducted anonymously to avoid regulatory scrutiny, Williamson claims that because almost all retail transactions are conducted using fiat currency such as the Canadian dollar, any bitcoin can be converted into cash immediately after Anonymity is lost.

“Whoever is running this protest campaign, they have to buy with Canadian dollars,” he said. “The money has to find its way back into the financial system and then that transaction is flagged as suspicious and you’re back to square one.”

Representatives of Canada’s largest banks have asked an industry trade body, the Canadian Bankers Association (CBA), to comment on the Emergencies Act.

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