Crypto Asset Restrictions

How crypto assets become restricted in Canada

Cryptoassets can be restricted in several distinct ways: a civil court order (such as a Mareva injunction or preservation order obtained in a lawsuit), a restraint or seizure order in a criminal investigation, action by a securities or other regulator, or a compliance hold imposed by the cryptocurrency exchange itself.

A restriction is a precautionary step. It does not, by itself, establish wrongdoing by the wallet holder.

Why the type of restriction matters

A court order, a regulatory action and an exchange's own compliance review each call for a different response. Understanding which applies — and which court, regulator or platform is involved — is the essential first step before any records are prepared.

Read the order — and note every deadline

The terms of the actual order determine what is restricted, for how long, and what rights you may have. Orders and accompanying notices can contain dates for court appearances or responses. Keep the document safe and seek independent legal advice promptly where a deadline is involved.

Wallet addresses, transaction IDs and exchange records

Public wallet addresses, transaction hashes and exchange account histories form the factual backbone of any review. Exported statements, deposit and withdrawal records and identity-verification correspondence with exchanges are often essential.

Source of funds and source of wealth

Being able to show how assets were acquired — employment income, business revenue, the sale of property, earlier investments — is frequently central. Records should link Canadian-dollar payments to crypto purchases and onward transactions in a clear chain.

Ownership and third-party interests

Assets may be jointly owned, held for a business, or belong in part to someone else. Evidence of who owns what, and why, should be gathered early so that any interest can be properly raised by a legal adviser.

Cross-border considerations

Exchanges, counterparties and proceedings may be located outside Canada. Where foreign jurisdictions are involved, we identify them clearly so your advisers can assess the cross-border implications.

The value of prompt independent legal advice

Decisions about challenging, varying or responding to an order are legal matters for a lawyer licensed in the relevant province or territory. We work alongside — never instead of — independent lawyers, helping ensure they receive well-organised information from the outset.