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The temporary and heavily boundaried emergency act actually protects people more than this proposition. It only applies from the date of its enactment, and has to go through two layers of government first (and every action undertaken has to by law be examined after the act is recalled, and it can only stand for 30 days, and it does not override all civil rights).

By definition, it is against illegal uses of funds (Including crypto). Considering KYC and AML still apply, if you use crypto for an illegal activity, you can be jailed. But not if you can't use it.