Tweets from the CEOs of Coinbase and Kraken that advocated self-custody of digital assets are being looked at the by the Royal Canadian Mounted Police for violating sanctions put in place to curb the trucker protests in the country, according to a report from The Logic.
- The Ontario Securities Commission (OSC) sent the tweets to the police because it believed that the crypto executives were offering advice on how to evade the sanctions on funds, according to the report.
- Late last week, the Ontario Provincial Police and Royal Canadian Mounted Police ordered all regulated financial institutions, including crypto exchanges, to cease trading and freeze the assets of “designated persons” involved in the trucker protests as well as 34 associated crypto wallets.
- Shortly after Deputy Prime Minister Chrystia Freeland announced the measure, both Powell and Armstrong tweeted in support of self-custody wallets.
- Self-custody means that the owner of the digital asset holds the private key for the wallet and thus has exclusive access. An appropriate metaphor would be keeping an asset in a safe with only the owner having the combination to the safe, instead of placing it in a bank.
- In crypto’s earliest days, this was the preferred way to store digital assets. As digital assets became more mainstream, many investors preferred to hold their crypto on exchanges or with other custodians – many of which are regulated entities with licenses and insurance.
UPDATE (Feb. 22, 12:55 UTC): Updates third bullet to say Powell and Armstrong tweeted in support of self-custody wallets.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.