MSB license in Canada
Tax laws and standards
Tax Rate
Reporting
Tax laws and standards
Tax Rate
Reporting
Cryptocurrency regulation in Canada
As of March 2021, in a public notice by the CSA and IIROC (Canadian Investment Regulatory Organization), Canada has asserted its position in regulating cryptocurrency activity. The government sector ensures that all cryptocurrency exchanges and companies comply with the regulations.
Every entrepreneur must register a company with the Financial Transaction Analysis Center of Canada (FinTRAC). The securities legislation must also apply to cryptocurrency transactions.
The use of virtual currency is not prohibited in Canada, but it is not considered legal tender. Transactions with cryptocurrency are allowed, but it is not possible to pay for state fees, taxes, and charges. The IRS has defined cryptocurrency as a commodity, which acts as a barter transaction in exchange for other goods.
AML/CFT Act (PCMLTFA Act).
Virtual work companies qualify as Money Service Businesses (MSBs). The Act also applies to exchanges operating outside the country and providing services to individuals and entities in the country.
The Securities Act.
In August 2017, the Canadian Securities Administrators (CSA) passed the CSA Staff Notice 46-307 Cryptocurrency Offerings Act, which regulates the licensing of virtual currency exchanges and transactions.
Bank of Canada's Blockchain Project.
Regulates international payments that use DLT technology.
The type of MSB license you can get in Canada
If you want to open a cryptocurrency business in Canada, an MSB license is required for legal activities.
Companies with this type of license can perform the following financial transactions:
Currency exchange
Money transferring
Wallet service
Service packages for registration of MSB license in Canada
FMSB LICENSE
- Dedicated consultant with the fully provided individual approach
accompany with all issues related to the incorporation, Bank account opening, Financial Transactions and Reports Analysis Center (FINTRAC) registration process, answering all the questions over the phone/email/WhatsApp and other connection channels
- Registration of the activities within FINTRAC
submission of application and registration within Financial Transactions and Reports Analysis Center (FINTRAC), negotiation with the regulator and full support during the entire process until the registration is accomplished. State duties are included
- Individual AML/KYC Policy
preparation of Individual Internal Procedural Rules and Anti-Money Laundering & Compliance Manual to comply with FINTRAC requirements in accordance with the business model of the Client. Provision of recommendations on the further business activities – up to 10 hours
MSB LICENSE
- Dedicated consultant with the fully provided individual approach
accompany with all issues related to the incorporation, Bank account opening, Financial Transactions and Reports Analysis Center (FINTRAC) registration process, answering all the questions over the phone/email/WhatsApp and other connection channels
- Full turnkey company formation assistance
remote/by physical presence (set up appointments with the notary, sworn translation of the documents, organization of other legal formalities), state duties and the notary fees are included
- Company name of your choice
verification within the Chamber of Commerce and Industry and the Canada Intellectual Property Office.
- Individual AML/KYC Policy
preparation of Individual Internal Procedural Rules and Anti-Money Laundering & Compliance Manual to comply with FINTRAC requirements in accordance with the business model of the Client. Provision of recommendations on the further business activities – up to 10 hours
- Registration of the activities within FINTRAC
submission of application and registration within Financial Transactions and Reports Analysis Center (FINTRAC), negotiation with the regulator and full support during the entire process until the registration is accomplished. State duties are included
- Corporate documents
Full set of apostilled and sworn translated corporate documents (articles and memorandum of association, registry card, etc.)
- Corporate account
assistance with opening a corporate account under crypto-oriented business B2B and C2B segregated accounts. In case of refusal by the first Financial Institution, we undertake to open a corporate account with another financial institution
- Handling the communication with Financial Transactions and Reports Analysis Center (FINTRAC)
up to 1 hour per month
- Local Anti-Money Laundering officer
with legal or financial background and skills in the compliance area (required by the law for crypto currency exchange and deposit operator) – up to 5 hours per month. Candidate search and employment arrangement is included
- Local Director
- Local Office
MSB LICENSE
- Dedicated consultant with the fully provided individual approach
accompany with all issues related to the incorporation, Bank account opening, Financial Transactions and Reports Analysis Center (FINTRAC) registration process, answering all the questions over the phone/email/WhatsApp and other connection channels
- Full turnkey company formation assistance
remote/by physical presence (set up appointments with the notary, sworn translation of the documents, organization of other legal formalities), state duties and the notary fees are included
- Company name of your choice
verification within the Chamber of Commerce and Industry and the Canada Intellectual Property Office.
- Individual AML/KYC Policy
preparation of Individual Internal Procedural Rules and Anti-Money Laundering & Compliance Manual to comply with FINTRAC requirements in accordance with the business model of the Client. Provision of recommendations on the further business activities – up to 10 hours
- Registration of the activities within FINTRAC
submission of application and registration within Financial Transactions and Reports Analysis Center (FINTRAC), negotiation with the regulator and full support during the entire process until the registration is accomplished. State duties are included
- Corporate documents
Full set of apostilled and sworn translated corporate documents (articles and memorandum of association, registry card, etc.)
- Corporate account
assistance with opening a corporate account under crypto-oriented business B2B and C2B segregated accounts. In case of refusal by the first Financial Institution, we undertake to open a corporate account with another financial institution
- Handling the communication with Financial Transactions and Reports Analysis Center (FINTRAC)
up to 1 hour per month
- Local Anti-Money Laundering officer
with legal or financial background and skills in the compliance area (required by the law for crypto currency exchange and deposit operator) – up to 5 hours per month. Candidate search and employment arrangement is included
- Local Director
- Local Office
Process and Timeline
Collection of documents from the client to start the process
up to 2 weeks- 1.Preliminary project analysis
- 2.KYC collection and business description
- 3.AML/CTF policy preparation
Registering a business in Canada
4-6 weeks- 1.Choose a name for the company
- 2.Rent an office and sign an agreement
- 3.Determine share capital
- 4.Prepare a set of corporate documents certified by a notary
- 5.Appoint employees with financial expertise
Opening a bank account
4-5 weeks- 1.Preparation of notarized documents
- 2.Preliminary talks with the payment institution and the account opening process
- 3.Payment of share capital
Pre-application work and registration
up to 2 weeks- 1.Preparing and adapting documents for AML/CTF cryptocurrency company operations
- 2.Search, employment, training, and adaptation of employees
- 3.Submission of license application
- 4.Collecting additional documentation as requested by the FinTRAC representative
- 5.Negotiating with FinTRAC representative
- 6.Compliance with FinTRAC representative requirements
Registration process (unless a clarification request was sent to the applicant following the submission)
up to 4 weeks- 1.Submitting the documents to FINTRAC
- 2.Leading the Client and conducting negotiations with the regulator and full support during the entire process until the registration is accomplished
Securities Law
- verification of the identity of every individual or entity that pays cash or performs a transaction of $10,000 or more
- verification of a customer who transfers or exchanges the equivalent of $1,000 in cryptocurrency
- confirmation of the identity of the company within one month, after receiving information on contracts for the exchange or transfer of digital currency.
- If the cryptocurrency is received from a government organization or financial institution, an exception is introduced for additional verification of the identity of the organization that received the transaction.
FinTech lawyers in Canada
Connect with our experts
CONTACT
TESTIMONIALS