Canadian Regulator Reports Coinbase, Kraken CEOs’ Crypto Custody Tweets

Canadian Regulator Reports Coinbase, Kraken CEOs’ Crypto Custody Tweets

Brian Armstrong, Jesse Powell. Source: video screenshots.


The crypto fallout from Canada’s so-called “truckers’ protest” is continuous to make its presence felt – with a monetary regulator reporting the heads of the American crypto change giants Kraken and Coinbase to the Royal Canadian Mounted Police, the Canadian nationwide police power, over their Twitter exercise.

Regina Leader-Post reported that the Ontario Securities Commission (OSC) had knowledgeable the police about tweets from the Kraken supremo Jesse Powell and the Coinbase boss Brian Armstrong. Both had hit out on the authorities’s resolution to make use of the anti-terrorist Emergencies Act to freeze protestors’ financial institution accounts and crypto addresses.

As beforehand reported, the Canadian authorities’s transfer was made as a part of an effort to starve the truckers’ convoy of entry to worldwide and home donations, in addition to their very own funds.

The CEO duo, through the protests, had referred to as for the adoption of non-custodial wallets – whereas Armstrong even took the chance to remind his followers that Coinbase offered a self-custody resolution.

The Canadian Prime Minister Justin Trudeau refused to carry the emergency measures in Ottawa, claiming that regardless that the blockades had now been cleared, the time had not but come to carry the Emergencies Act.

The OSC was quoted as stating:

“We are conscious of [the tweets] and have shared [the information] with the RCMP and the related federal authorities.”

The media outlet additionally famous that the RCMP has “despatched a listing of cryptocurrency addresses related to the convoy protests to crypto buying and selling platforms,” and had requested them “to freeze and report any transactions associated to them.”

Both Kraken and Coinbase are registered with FINTRAC, the Canadian monetary regulator that polices crypto. Both have registered as “money-services companies dealing in digital currencies,” the identical media outlet famous, remarking that their registrations with the physique “had been in place lengthy earlier than the emergency orders.”

On Twitter, some commented that regulators may nicely take a dim view of the exchanges, significantly as they search additional regulatory approval.

John Paul Koning, an economics author, opined:

“I don’t think about this bodes nicely for the continued technique of registering Kraken [and] Coinbase beneath Canada’s new regulatory framework for crypto marketplaces.”

But Nic Carter, Partner at Castle Island Ventures, smarted on the suggestion that Armstrong’s feedback had been reported to the police. He replied:

“Brian Armstrong actually simply stated ‘self custody is necessary.’ Canada seems decided to turn into Venezuela.”

However, not all had been eager to hurry to Powell and Armstrong’s aspect. Exchanges had been informed to freeze funds in sure addresses, and apparently went forward and did so, argued one Redditor, displaying that Powell was “no hero.”

The Redditor defined:

“I truly suppose exchanges like Kraken are morally fallacious for complying. At what level do you draw the road? […] At what level does Kraken stand [up] for [its] values and say ‘no, we won’t comply’ to the state?”

Another Redditor bristled at this suggestion, nonetheless, countering:

“So are they alleged to cease serving Canadians? Or would you like them to have all their property pilfered by the federal government and the change destroyed?”

Elsewhere on Reddit, a person hit out on the OSC for its actions, claiming that Armstrong and Powell had been merely “straightforwardly telling customers the place the most secure place for his or her property is,” including:

“That, [as] far as I’m involved, has nothing to do with instructing individuals on evade laws. It’s a easy reality.”


Learn extra:
– Canada Tests New Measures on Freezing Crypto Funds (UPDATED)
– Canada Asks Banks, Exchanges to Block Crypto Accounts Tied to Trucker Convoy Protests

– Canada Joins Lebanon and Turkey in ‘Bitcoin’s Marketing Team’
– Gov’t Response to Canada Protests Brings one other Ex-Bitcoin Skeptic into Crypto Fold

– Canadian Tax Agency Launches Audit To Thwart Crypto Tax Evasion
– How Global Economy Might Affect Bitcoin, Ethereum, and Crypto in 2022

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About the Author: Daniel