The CEO of Kraken Advises Cryptocurrency Users to Avoid Centralized Exchanges
The demonstrations in Canada and the following shift to cryptocurrency as a means of funding demonstrators continue.
Prime Minister Justin Trudeau recently invoked the Canada Emergencies Act, which had severe consequences for some demonstrators. As the Canadian government prepares to confiscate accounts allegedly belonging to Freedom Convoy demonstrators, Kraken CEO Jesse Powell has warned investors to avoid centralised exchanges.
The CEO Of Kraken Slams The Government
Jess Powell responded to a video aired on True North in which Deputy Prime Minister Chrystia Freeland acknowledged that crypto accounts submitted to the RCMP have been blocked, indicating that other accounts will be seized. Additionally, the PM said that accounts were blocked in accordance with legislation that has been notified to financial service providers, who would take appropriate action.
Powell, the co-founder and CEO of cryptocurrency exchange Kraken, responded by criticising the government’s response to the protests. He directs his ire at the legal system, which has moved to seize people’s property when they oppose the government.
“Procedure is for plebs. In Canada, might makes right,” Powell said. “If someone expresses dissatisfaction, you just seize their riches, cancel their licences, bar them from the banking system, and slaughter their pets. There is no need to argue law, policy, or even individual rights when you have a monopoly on violence.”
Remove Your Cryptocurrency from Centralized Exchanges
Additionally, the CEO advised cryptocurrency users on how to safeguard their assets. Powell answered affirmatively to another Twitter user who said that the crypto exchange may potentially be forced to freeze funds without court permission.
Given that the CEO maintains a centralised exchange, they are obligated by law to implement Know Your Customer (KYC) processes. This implies that if government authorities direct them to freeze the assets of persons or corporations, they will be compelled to comply. Given this, Powell urges users to avoid centralised exchanges and instead utilise peer-to-peer trading platforms to secure themselves and their investments effectively.
Cryptocurrencies are not yet legal in Canada, but they are also not prohibited. The Bank of Canada, the country’s central bank, has been experimenting with digital currencies (CBDCs), although nothing concrete has been released on this endeavour.