Crypto CEOs Issue Warning to Keep Coins Off Centralized Exchanges

Both Kraken’s Jesse Powell and Coinbase CEO Brian Armstrong have issued warnings to cryptocurrency investors in the wake of Canadian executive orders to seize funds and freeze bank accounts linked to Freedom Convoy protests.

On Thursday this week, Canadian Deputy Prime Minister issued an order under the Emergencies Act, which gives the government power to freeze or suspend bank accounts without having to obtain a court order. It also affords government officials protection from civil liability.

Kraken’s Powell criticized the Canadian government’s actions in a tweet on Thursday evening.

Powell also warned that Kraken would be forced to comply with any government orders to freeze deposits and that if users are worried about their funds, they should take them off centralized or regulated exchanges and only use peer-to-peer transfers.

We cannot protect you. Get your coins/cash out and only trade p2p.

Jesse Powell, CEO Kraken

Coinbase CEO Brian Armstrong also expressed concerns about the Canadian response to the protests, stating that it is “concerning to see stuff like this happening in any country, especially such an economically free place like Canada – Self-custodial wallets are important!“

Read more: The Ultimate Guide to Keeping Your Crypto Safe.

Central Bank Digital Currencies

The actions of the Canadian government also highlight a wider issue about how Central Bank Digitial Currencies (CBDCs) could be used to silence and punish dissenting voices. If CBDCs are implemented it could potentially give governments “absolute control” over an individual’s funds, allowing for accounts to be switched off or restricted based on the whims of the rulers of the day.

See Also

Crypto Regulatory and Policy News Roundup July 12 2022

Just last year, the head of the Bank of International Settlements said the following about CBDCs:

We don’t know who’s using a $100 bill today and we don’t know who’s using a 1,000 peso bill today. The key difference with the CBDC is the central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability, and also we will have the technology to enforce that.

Agustin Carstens, Bank of International Settlements

Read more: Steel Wallets to keep your private keys safe.

What’s your opinion on the Canadian government’s recent actions? How might the situation be look if CBDCs were already implemented? Leave your comments below.