This is acceptable. Everyone should have an inalienable right to proof of identity and access to an electronic funds account, regardless of their crimes. If the government wants to seize funds, they can go to court and prove the crime.
Edit: I don't think an army would have been the best solution either... Since the protest, many of those same people are now part of the defund police protests. Imagine the mess that would have happened if the police had showed up in military gear and arrested thousands of people...
You can read more here: https://nationalpost.com/news/politics/bureaucrats-who-froze...
The reality is that it is legal for the Canadian state to extrajudicially suppress protests, hence why it is important to have cash around because of these laws.
Also what if the use of the Emergency Act is found to NOT be justified in a report a year later? How are you going to make those who had their bank accounts frozen whole again? A report in one years time in the future is not going to help you buy food or pay for shelter today.
If a crime has been committed, and there is a fine with the crime, and there is a conviction of the crime, then the government taking money from the electronic account as payment for the fine is OK.
But the right to engage in transactions should never be able to be taken away.
In Windsor they used tow trucks from Michigan to clear out the protestors trucks. Which if you think about it, Canada government used foreign aid to end a protest against itself.