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An image capturing Toronto's skyline with the CN Tower prominently displayed. The scene is composed to visually represent the concept of 'Crypto License Canada' without any text, focusing on elements that symbolize the intersection of Canadian finance and cryptocurrency innovation.

CRYPTO LICENSE CANADA

Consulting24 offers assistance in obtaining MSB license aka Crypto License Canada, essential for crypto businesses in Canada's flexible and legally secure financial services sector.

OUR CLIENTS

 CANADA CRYPTO LICENSE: OUR TEAM HELPS IN FACILITATING YOUR LICENSE ACQUISITION.

Consulting24 has rapidly become the leading consultancy firm across the UK, Canada, Singapore, Estonia, Lithuania, and Dubai, distinguished by the volume of its operations and having successfully secured over 500 crypto exchange licenses.

500+

Over crypto licenses complited

12+

We help with Canada, UK, Singapore, Dubai, Estonia & Lithuania  crypto license registration.

300+

Companies registered in numerous jurisdictions

CANADA CRYPTO LICENSE  EXPLAINED

Financial enterprises offering crypto trading for customers must adhere to Canadian regulations designed to identify criminal conduct and thwart money laundering activities. Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), two main categories of financial entities are obligated to fulfill these duties in Canada:

 

1. Foreign Money Service Businesses (FMSBs)

2. Money Service Businesses (MSBs) 

Both will permit to offer services associated with virtual currencies.

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Request 30-min FREE consulting for crypto license in Canada.

CANADA CRYPTO EXCHANGE LICENSE: YOUR PATHWAY TO COMPLIANCE AND OPERATION

A business that wants to provide crypto exchange services qualifies as a Money Services Business (MSB) in Canada if it meets specific criteria:

  1. The business provides at least one of the following MSB services to its clientele: currency dealings, currency exchanges, funds transfers, facilitation of financial transactions for third parties, or intermediation in bill and utility payments, wages, mortgages, loans, etc. This excludes payments made exclusively towards debt settlement when instructions are provided directly to the debtor.
     

  2. It engages in the issuance or redemption of money orders, traveler's checks, or similar negotiable instruments, except when cashing checks made out to a specific individual or selling traveler's checks on behalf of the issuer.
     

  3. It offers services pertaining to virtual currency, which includes the exchange of fiat to virtual currency, swapping of one virtual currency for another, the transfer or reception of virtual currency, or maintaining a crowdfunding platform for finance or virtual currency.

Additionally, a business is considered to be operating within the MSB framework if:

  1. It conducts business within Canada, maintains a physical presence, employs staff or agents, or has established a branch in the country.
     

  2. It holds a license or is registered for activities linked to any of the services mentioned above.
     

  3. It actively promotes any of the above services through various advertising channels, including media, online platforms, billboards, etc.
     

  4. It conducts financial remittance or foreign exchange transactions exceeding $1,000 per transaction, issues and redeems negotiable financial instruments beyond $1,000 per transaction, or records income from any of these services for taxation purposes.

MONEY SERVICES BUSINESS (FMSB) EXPLAIND

A business is designated as a Foreign Money Services Business (FMSB) if it operates as an MSB outside of Canada's borders while serving Canadian clients. The criteria for an FMSB include:
 

  1. Offering MSB-type services without a physical establishment, employee base, or representatives within Canada.
     

  2. Engaging with customers within Canada, which can be indicated by marketing efforts aimed at Canadian residents, managing a ".ca" domain, or being listed in the Canadian Business Directory.
     

  3. Serving individuals in Canada, discernible through their local residential addresses, documentation from Canadian authorities, bank cards from Canadian institutions, or if they are residing temporarily in Canada for work, study, or leisure.

An image capturing Toronto's skyline with the CN Tower prominently displayed. The scene is composed to visually represent the concept of 'Crypto License Canada' without any text, focusing on elements that symbolize the intersection of Canadian finance and cryptocurrency innovation.

COMPARING MSB AND FMSB LICENSING IN FINANCIAL REGULATION

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CRITERIAS FOR OBTAINING AN MSB LICENSE FOR CRYPTO

  1. Registration and Compliance: Entities must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), and adhere to all applicable anti-money laundering (AML) and counter-terrorist financing (CTF) guidelines.
     

  2. Operational Details: Applicants should provide detailed operational information, including ownership structure, the nature of services offered, and internal policies and procedures for AML/CTF.
     

  3. Financial Reporting: Regular financial reporting and record-keeping are necessary to maintain transparency and facilitate oversight.
     

  4. Know Your Customer (KYC): MSBs are required to implement KYC processes to verify the identity of their customers and maintain detailed records of transactions.
     

  5. Risk Assessment: A risk assessment must be conducted to identify potential risks related to money laundering and terrorist financing within the company's operations, with procedures in place to mitigate identified risks.
     

  6. Training Programs: Staff must be trained in AML/CTF compliance, and a compliance officer should be appointed to oversee the implementation of the company's AML/CTF framework.

An image capturing Toronto's skyline with the CN Tower prominently displayed. The scene is composed to visually represent the concept of 'Crypto License Canada' without any text, focusing on elements that symbolize the intersection of Canadian finance and cryptocurrency innovation.

MSB LICENSE REQUIREMENTS

  1. A physical office within Canada is required.

  2. Registration with FinTRAC is mandatory.

  3. Development and adherence to comprehensive AML/CTF policies, including risk management and surveillance protocols, are essential.

  4. Adherence to client identification, meticulous record-keeping, and stringent reporting regulations is non-negotiable.

  5. Founders, shareholders, and employees must have a clean legal background, substantiated by non-criminal record certificates from their country of origin.

  6. The appointment of a dedicated compliance officer to oversee AML/CTF frameworks is a critical requirement.

  7. Vigilant monitoring of suspicious transactions and mandatory reporting to relevant authorities is required.

  8. The company's board must include at least one director with financial expertise.

PROCESS OF OBTAINING MSB LICENSE

The entire process to establish a Money Services Business, from registration to operational readiness including bank account setup, typically takes around 3-4 months.

Step 1 - Gathering Client Documentation to Initiate the Process

  1. Initial Project Review

  2. Acquisition of KYC Details

  3. Business Overview Development of AML/CTF Strategies

Illustration of the Canada flag alongside a symbol of a crypto license in Canada, indicati

Step 2 - Company registration in Canada

  1. Selecting a Company Name

  2. Securing Office Space and Finalizing a Lease Agreement

  3. Establishing the Share Capital

  4. Notarization of Corporate Documentation

  5. Hiring Financially Skilled Personnel

Step 3 - Open a bank account

  1. Drafting and Notarizing Official Documents

  2. Opening bank account 

  3. Deposit share capital

Step 4 - Submitting documents for an MSB license

  1. Drafting and Customizing Documents for AML/CTF Compliance in Crypto Operations

  2. Recruitment, Training, and Onboarding of Staff

  3. Filing the License Application

TESTIMONIALS

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I had an honor to work with Lena for last few years and I would highly recomend her to all who would need her services. It’s been a pleasure and very easy work and communication. Good kind & reliable person. True professional who provides professional services and timely response to all inquiries. Follows up with all updates and makes sure u are in the best standing u can be with your business by making sure that u are educated of what’s new and compliant.

- Ingrida Laukiene, Founder of DiamondBack Group

MEET OUR TEAM

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Mardo Soo

CEO

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Lena Elvbakken

Founder

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An image capturing Toronto's skyline with the CN Tower prominently displayed. The scene is composed to visually represent the concept of 'Crypto License Canada' without any text, focusing on elements that symbolize the intersection of Canadian finance and cryptocurrency innovation.
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