After tweeting tips on how to get around Canada’s financial restrictions, Brian Armstrong and Jesse Powell have caught the attention of the OSC. Brian Armstrong and Jesse Powell, the CEOs of Coinbase and Kraken, were recently flagged by the Ontario Securities Commission (OSC) for tweets related to Canada’s freedom convoy protests.
Brian Armstrong and Jesse Powell are on the OSC’s radar after a series of tweets advising followers on how to get around Canada’s financial constraints. Each has been accused of giving guidance on how to use self-custodial crypto wallets to get over national financial emergency regulations.
Kristen Rose, the OSC’s manager of public affairs, told The Logic that the commission is now “informed” of specific government-critical tweets from Powell and Armstrong. She told the newsroom in an email that the RCMP and other relevant authorities had been notified about the posts.
Both CEOs have issued a number of tweets and retweets in recent weeks criticizing Canada’s response to widespread rallies against the Covid-19 health restrictions. They’ve been particularly harsh on the financial limits imposed on individuals who donate to the cause. One of these limitations gives financial service providers new authority to freeze consumers’ accounts without a court order.
In the context of government measures, the OSC took issue with the exchange owners’ recommendation that consumers self-custody their cryptocurrencies. Armstrong termed Canada’s new restrictions “concerning” on February 15th, and provided a link to Coinbase’s self-custodial wallet, which he deemed “essential.”
Powell’s last tweet was even more forthright, advising convoy contributors to use non-custodial wallets. “Crowdfunding platforms now regulated under the Canadian Terrorist Financing Act,” he said. “Do you see where this is going? Please do not fund causes directly from custodial wallets. I’m sure freeze orders are coming. Withdraw to non-custodial before sending.”
Powell has personally donated to ‘Bitcoin for Truckers,’ a protest fundraising run by TallyCoin, a Bitcoin-native crowdfunding platform. The page has since been taken down, and the convoy’s organizers are facing legal charges after amassing nearly $1 million in cryptocurrency for the convoy.
Bitcoin was created as a “peer-to-peer electronic cash system” that does not rely on third parties to facilitate transactions. This makes it extremely difficult for banking regulators to prevent transactions involving privately held Bitcoin.
Coins kept by exchanges or custodians, on the other hand, are just as easy to freeze as fiat money held by a bank. Powell said his exchange would reluctantly agree to block funds at the government’s request, despite his objections to the limits. As a result, he recommended worried Kraken customers to withdraw their funds and donate exclusively through peer-to-peer (P2P) transactions.
If you find this article informative then do not forget to share it with your friends and family!
Also read: ASCI Issues Crypto Ad Guidelines To Strictly Control False Claims
