Prime Minister Justin Trudeau resorted to invoking the Emergencies Act for the first time in Canadian history to try to control the protests over COVID-19 restrictions. Most notably among Trudeau’s response was the decision to freeze bank accounts of protestors and expand the reach of anti-money laundering (AML) laws.

Although taking people’s money away, even if temporarily, surely limits their ability to legally protest, Trudeau carefully defended his decision by stating,

We’re not suspending fundamental rights or overriding [Canada’s] Charter of Rights and Freedoms. We are not limiting people’s freedom of speech. We are not limiting freedom of peaceful assembly. We are not preventing people from exercising their right to protest legally. We are reinforcing the principles, values, and institutions that keep all Canadians free.

Regardless of what Trudeau says about his government’s actions, Deputy Prime Minister and Finance Minister Chrystia Freeland’s remarks demonstrate just how far these policies go:

In invoking the Emergencies Act, we are … broadening the scope of Canada’s anti-money laundering and terrorist financing rules so that they cover crowdfunding platforms and the payments service providers they use. These changes cover all forms of transactions––including digital assets such as cryptocurrencies… As of today, a bank or other financial service provider will be able to immediately freeze or suspend an account without a court order.

Many Americans may not realize it, but the same principles that make this attack on Canadians’ financial freedom possible are engrained in U.S. law. Specifically, they are featured in both the Bank Secrecy Act and the ever-expanding use of the third-party doctrine. However, a notable step in the right direction came today with the announcement of Representative Warren Davidson’s (R‑OH) Keep Your Coins Act.

Those familiar with monetary and financial policy will undoubtedly recognize the clever play on “KYC” (or, know your customer), but the focus of Representative Davidson’s bill is on protecting self-hosted wallets from unwarranted prohibition or restriction.

Holding cryptocurrency in a “self-hosted” wallet is merely the digital equivalent of holding physical cash in a traditional wallet. It gives the owner complete control over what’s held inside it and the extent that they want to maintain their privacy. Representative Davidson is right to point out the same cannot be said of cryptocurrencies held in wallets or accounts maintained by third parties because, in the eyes of the federal government, relying on such third parties effectively waives an individual’s right to financial privacy.

So, while financial privacy should already be protected by the Constitution (namely, the Fourth Amendment), preventing the government from being able to prohibit or restrict the use of self-hosted wallets is a much-needed policy improvement. And it seems that it’s a step forward that is needed now more than ever.

When considering what cryptocurrencies mean for liberty, cases when authoritarian regimes freeze the bank accounts of activists and rivals serve as stark reminders of how little regard for individuals such governments have. Sadly, Trudeau’s decision demonstrates that this kind of oppressive behavior is not unique to authoritarian governments.

Whether people realize it or not, this sort of event could just as easily occur in the United States. In fact, it’s a prime example of why Americans need stronger financial privacy rights.