The convoy of truckers blocking travel in Canada has forced the government to step in and stop funding.
Initially the protesters used websites like GoFundMe but when they were forced to close donations, devotees moved into cryptocurrency to continue their support.
Now the Canadian government has issued a stop to 34 different cryptocurrency wallets and blacklisted them from local exchanges.
This includes 29 Bitcoin (BTC) addresses, 2 Ethereum addresses and individual addresses for Monero, Litecoin and Cardano have been blacklisted from using centralized exchanges in Canada.
This means any donations sent from those addresses cannot be easily converted into fiat and sent to bank accounts.
Blacklisting these addresses came into play after Canadian Prime Minister Justin Trudeau enabled the Emergencies Act, which allows the government to go after any “illegal acts” including fundraising.
One of the largest of the blacklisted accounts was a BTC address with the name “Bitcoin for Truckers”. This account held more than $900,000 in BTC but much of that has already been distributed to various wallets.
Deputy Prime Minister Chrystia Freeland has announced that many of the websites allowing cryptocurrency donations have been stopped and urged the platforms to report large, suspicious transactions to FINTRAC.
As BTC is decentralized, there is no way the Canadian government can step in and confiscate these funds.
Instead, their only option is to blacklist these addresses from the exchanges. This does not fully stop users from cashing out these funds.
There are many peer-to-peer options available as well as BTC ATMs that can be used to convert the coins into fiat.
Canadian cryptocurrency enthusiasts worry that these actions and swift regulations could turn into a long-term problem for digital currency holders.
Last year, before the bull market started, the bank of Canada estimated that 5% of the population owned cryptocurrencies. That value is likely to be a lot higher after last year’s incredible growth.
Many digital currency enthusiasts will be watching these protests and will view how easily BTC can evade censorship. If these protestors can successfully use peer-to-peer options to continue funding, it will prove that BTC cannot be stopped.
Many crypto enthusiasts believe the growing police arrests and presence will put a stop to the protest before we have a chance to see BTC fight censorship.