If I am not mistaken, the Canadian government banned bitcoin addresses (not wallets) that are associated with the fundraising in favor of those who so far have been peacefully protesting. They can't ban self-hosted bitcoin wallets because it would require seizing or destroying all the backups of seed phrases and private keys which are things with which you ensure control over a specific wallet. Since they haven't seized or destroyed anything, users, who were supposed to be affected by such a ban, can continue to use their wallets without any friction. The Canadian government can't ban specific bitcoin addresses either because users, who happen to have their addresses banned, can create as many additional addresses as they want because it costs nothing, and they can move banned coins to another address that is not yet banned. While it is costless to create another bitcoin address, the costs of enforcing such a ban, the costs of monitoring and updating a blacklist, and costs of other things that different platforms have to do to comply with regulations, are considerable and they can become an unbearable burden for taxpayers, which may result in social unrest and even more protests.