Judicial Rebuke: Crypto Freeze during 'Freedom Convoy' Protests Deemed Unlawful
In a landmark ruling on January 23, the Federal Court of Canada declared the Trudeau government's decision to freeze funds and cryptocurrencies during the 2022 'Freedom Convoy' protests as unconstitutional. Justice Richard Mosley concluded that the use of the Emergencies Act was not justified since there was no national emergency.
Controversial Move to Curb Financial Support
The Trudeau government, led by Prime Minister Justin Trudeau, implemented the freeze in February 2022 to suppress financial aid for truckers protesting against Covid-19 vaccination mandates. This marked the first instance in which the law was employed to freeze financial assets, including cryptocurrencies.
Organizations such as the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, along with various groups, contested the government's decision, arguing that it was excessive and violated constitutional rights. The court's ruling supports their position and emphasizes that the government could have pursued alternative measures instead of resorting to the Emergencies Act, which was seen as an overreach.
'Freedom Convoy' Protests and the Emergencies Act
The 'Freedom Convoy' protests involved demonstrators blocking roads in Ottawa to express their opposition to the Covid-19 vaccination requirements for truck drivers crossing the Canada-United States border. The government classified the protests as an illegal occupation, necessitating the use of the Emergencies Act.
Implications for Crypto Assets in Political Protests
This court ruling holds significant implications for the utilization of cryptocurrency assets in political demonstrations. Digital assets played a role in funding the trucker protests, with estimates suggesting that millions of dollars were received in the form of cryptocurrencies.
In February 2022, Gofundme froze donations amounting to over $9 million for the protests. Subsequently, fundraising efforts shifted to Tallycoin, a bitcoin-based crowdfunding platform, where the Honkhonk Hodl group received over 22 bitcoins, valued at approximately $925,000 at that time. The Christian crowdfunding site Givesendgo also emerged as a notable platform, raising over $8 million, including undisclosed sums in cryptocurrency. Canadian authorities later froze bank accounts associated with Givesendgo donations.
CCLA's Response and Government's Intention to Appeal
In response to the court's decision, the Canadian Civil Liberties Association released a statement expressing their satisfaction: "The CCLA stood up against the government's use of the Emergencies Act and challenged it in court. The Federal Court's ruling establishes a clear and crucial precedent for all future governments."
Finance Minister Chrystia Freeland announced the government's intention to appeal the ruling.
What are your thoughts on the repercussions of this ruling? Share your opinions in the comments section below.
Frequently Asked Questions
What precious metals could you invest in to retire?
Knowing what you have saved so far and where you plan to save money in the future is the first step towards retirement planning. If you don’t know how much you currently have saved, start by taking an inventory of everything you own. You should list all savings accounts, stocks and bonds, mutual funds certificates of deposit (CDs), annuities, life insurance policies, annuities 401(k), real estate investments, and any other assets like precious metals. To determine how much money is available to invest, add all these items.
If you are under 59 1/2 you should consider opening a Roth IRA Account. Traditional IRAs allow you to deduct contributions out of your taxable income. Roth IRAs don’t. However, you will not be able take tax deductions on future earnings.
If you decide to invest more, you will most likely need to open a second investment account. You can start with a regular brokerage account.
How to open a Precious Metal IRA
You can open an IRA in precious metals by opening a Roth Individual Retirement Account (IRA), which you can self-direct.
This type of account is better than other types of IRAs because you don’t have to pay any taxes on the interest you earn from your investments until you withdraw them.
This makes it very attractive to people who want to save money but also need a tax break.
You are not limited to investing in gold or silver. If it meets the IRS guidelines, you can invest in any asset that interests you.
While most people associate precious metals with silver and gold, there are many types of precious metals.
Examples include platinum, palladium and rhodium.
There are several ways you can invest in precious metals. These include purchasing bullion coins and bars, as well as shares in mining companies.
Bullion Coins or Bars
One of your easiest ways to get into precious metals is to purchase bullion coins. Bullion can be used to refer to the physical ounces or gold or silver.
Bullion bars and bullion coin are real pieces of metal.
While you may not immediately see any change after buying bullion coins and bars in a store, there will be some long-term benefits.
For example, you will get a tangible piece of history. Each coin or bar has its own story.
You’ll often find that the face value of a coin is far lower than its nominal value. The American Eagle Silver Coin cost $1.00 an ounce in 1986 when it was first introduced. However, today, an American Eagle Silver Coin is more than $40.00 per Ounce.
Since the value of bullion has increased dramatically since its introduction, many investors prefer buying bullion coins and bullion bars rather than futures contracts.
Mining Companies
Investing in shares of mining companies is another great option for those looking to buy precious metals. When you invest in mining companies, you are investing in the company’s ability to produce gold and silver.
In return, you will receive dividends based on the company’s profits. These dividends will be used to pay shareholders.
Additionally, you will be able to take advantage of the company’s potential growth. The share prices of the company should rise as more people buy the product.
It is crucial to diversify your portfolio because these stocks are subject to price fluctuations. This involves spreading your risk over multiple companies.
It’s important to remember, however, that mining companies can still be subject to financial losses, just as any other stock market investment.
Your share of ownership may be worthless if gold prices fall significantly.
The Bottom Line
Precious metals such as gold and silver provide a haven during economic uncertainty.
Silver and gold, however, can experience wild swings in their prices. If you’re interested in making a long-term investment in precious metals, consider opening up a precious metals IRA account with a reputable firm.
This allows you to benefit from tax advantages and physical assets.
What type of IRA is used for precious metals?
Employers and financial institutions often offer Individual Retirement Accounts (IRA) as an investment vehicle. Through an IRA, you may contribute money to an account that grows tax-deferred until withdrawn.
An IRA allows you to save taxes and pay them later when you retire. This means you can save money and pay taxes later on the money that you have deposited to your retirement account.
An IRA has the advantage of allowing contributions and earnings to grow tax-free until you withdraw your funds. When you do, there are penalties for early withdrawal.
Additional contributions can be made to your IRA even after you turn 50, without any penalty. If you decide to withdraw funds from your IRA while you are still working, you’ll owe income-taxes and a 10% penalty.
Withdrawals that are made prior to the age of 60 1/2 are subjected to a 5% IRS tax penalty. A 3.4% IRS penalty is applicable to withdrawals made between the ages of 59 1/2 and 701/2.
A 6.2% IRS penalty applies to withdrawals exceeding $10,000 per annum.
What is a Precious Metal IRA and How Can You Benefit From It?
Precious metals can be a good investment for retirement accounts. They have been around since biblical times and continue to hold value today. Investing in precious metals such as gold, silver, and platinum is also a great way to diversify your portfolio and protect against inflation.
Certain countries permit citizens to hold their money in foreign currencies. You can purchase gold bars from Canada and keep them at your home. Then, when you go back to visit family, you can sell those same gold bars for Canadian dollars.
This is an easy way to invest precious metals. It’s particularly helpful for people who don’t reside in North America.
Does a gold IRA earn interest?
It all depends upon how much money you invest. If you have $100,000 to spare, then yes. If your assets are less than $100,000, it is no.
The amount of money that you put into an IRA is what determines whether it earns or not interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
Although you’ll likely earn higher interest, there are greater risks. If the stock market crashes, you don’t want all your money to be lost.
An IRA is better if you have $100,000 to invest per year. You can do this until the market grows again.
Are gold IRAs a good place to invest?
An investment in gold can be made by buying shares of companies that mine it. This is a good way to make money when you invest in gold and other precious metals like silver.
However, there are two drawbacks to owning shares directly:
If you hold on to your stock for too much time, you risk losing money. Stocks can fall more than their underlying asset (like, gold) when they decline. This could mean that you lose money rather than making it.
Second, you may miss out on potential profits if you wait until the market recovers before selling. It is possible to wait until the market recovers before selling your gold.
If you prefer to keep your investments apart from your finances, physical gold is still an option. An IRA with gold can diversify and protect your portfolio against inflation.
Visit our website to find out more about investing in gold.
What are the pros and cons of a gold IRA?
For those who don’t have the ability to access traditional banking services but want to diversify their portfolios, a gold IRA can be a great investment option. You can invest in precious metals like gold, silver, or platinum, without having to pay taxes until the gains are withdrawn.
There is a downside to this: if you withdraw your earnings early, you’ll be subject to normal income tax. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
So if you like owning gold without worrying about taxes, a gold IRA may be right for you.
Statistics
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item’s value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
External Links
investopedia.com
takemetothesite.com
wsj.com
en.wikipedia.org
How To
How to Decide if a Gold IRA Is Right for You
The most popular type of retirement account is the Individual Retirement Account (IRA). IRAs can be obtained through banks, financial advisors, mutual funds, employers and banks. The IRS allows individuals to contribute up $5,000 annually without worrying about tax consequences. This amount can be contributed to any IRA, regardless of your age. There are limits to how much money you may put into certain IRAs. For example, if your age is less than 591/2 years old, you can’t contribute to a Roth IRA. If you’re under 50, you must wait until you reach age 70 1/2 before making contributions. Individuals who work for their employer could be eligible for matching employer contributions.
There are two main types of IRAs: Traditional and Roth. Traditional IRAs let you invest in stocks, bonds, and other investments. Roth IRAs only allow you to make after-tax money. Roth IRA contributions don’t get taxed as soon as they are made. However, withdrawals from a Roth IRA will be taxed again. A combination of both accounts may be preferred by some people. Each type has its advantages and disadvantages. What should you look at before deciding which type is best for you? Below are three important things to keep your mind on:
Traditional IRA pros:
- Each company has its own contribution options
- Employer match possible
- More than $5,000 in savings per person
- Tax-deferred growth up to withdrawal
- Limitations may apply based on income levels
- Maximum contribution limit for married couples is $5500 annually ($6,500 jointly).
- Minimum investment is $1,000
- You must start receiving mandatory distributions after age 70 1/2
- To open an IRA, you must be at least 5 years old
- You cannot transfer assets between IRAs
Roth IRA Pros
- Contributions do not attract taxes
- Earnings grow without paying taxes
- No required minimum distributions
- Investment options are limited to stocks, bonds, and mutual funds
- There is no maximum amount limit
- No limitations on transferring assets between IRAs
- An IRA can only be opened by those 55 and older
You should be aware that not every company offers the same IRAs. Some companies offer the option of a Roth IRA, while others provide a choice between a Roth IRA and a traditional IRA. Others offer the possibility to combine them. Noting that different types IRAs have different requirements, it’s worth noting. A Roth IRA does not have a minimum investment requirement. Traditional IRAs require a minimum of $1,000.
The Bottom Line
When choosing an IRA, the critical factor is whether you want to pay taxes now or later. If you’re planning to retire in the next ten-years, a traditional IRA may be the best option. If you are not able to retire within ten years, a Roth IRA may work better for you. It doesn’t matter what, it is a good idea consult a professional to discuss your retirement plans. It’s important to have someone who is knowledgeable about the market and can suggest the best options for you.
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By: David Sencil
Title: Canada’s Federal Court Declares Trudeau Government’s Crypto Freeze Unconstitutional
Sourced From: news.bitcoin.com/canadian-court-declares-freeze-on-crypto-donations-during-freedom-convoy-protests-unconstitutional/
Published Date: Thu, 25 Jan 2024 15:30:13 +0000
