Canada Court Declares Emergency Law Unconstitutional: Details

The Federal Court of Canada has stated that an emergency law that instilled the power in the government to stop the flow of funds and crypto to protesting truckers was unconstitutional and had no basis. 

In a court ruling on Tuesday, Justice Richard Mosley stated that “there was no national emergency justifying the invocation of the Emergencies Act, and the decision to do so was therefore unreasonable.”

Canada Court Rules Against the Emergency Law

It is important to mention here that in February 2022, Prime Minister Justin Trudeau’s government used the emergency law for the first time to block and freeze funds that were being sent to truckers who were protesting against the COVID-19 restrictions. 

The court stated that the usage of the law was not necessary, unreasonable, and unconstitutional. 

Challenging Government’s Policies

The protestors from “Freedom Convoy” used their trucks to block the streets in Ottawa, the capital of Canada, as a form of protest against the government’s requirement for all truck drivers crossing the Canada-United States border to be fully vaccinated against COVID-19.

The Canadian Civil Liberties Association (CCLA), the Canadian Constitution Foundation, and other groups challenged the government’s use of the emergency law to freeze crypto and funds donated to the protestors. 

Clear Precedent for Future Governments

The CCLA also emphasized the fact that the use of the emergency was unconstitutional while adding that it “sets a clear and critical precedent for every future government.”

Justice Mosley noted that the government of Canada “cannot invoke the Emergencies Act because it is convenient or because it may work better than other tools at their disposal or available to the provinces,” adding that it is to be only used as a last resort.

On the other hand, Finance Minister Chrystia Freeland confirmed that the government will be appealing the ruling.

Crypto Usage in Canada

Recently, multiple firms have decided to wind down operations in Canada, and Coinbase recently confirmed the suspension of the trading of the world’s largest stablecoin by market capitalization, USDT.

Additionally, crypto exchange Binance also announced its exit from the Canadian market on Twitter on May 12.