Why Is The Help With Obtaining An MSB License In Canada Important For Any Payment Business?

SBSB is a law firm with 10 years of experience specializing in the fintech and crypto industries. It provides a full range of legal services, including company registration, obtaining licenses for payment providers, crypto exchanges, online banking, crowdfunding, opening bank accounts, and much more.

Their clients are companies from Europe, Asia, the Middle East, and America, working in cryptocurrency, blockchain, fintech, online gambling, and investment. They can find optimal solutions for clients, allowing them to focus on their business.

MSB License,

The Importance of the MSB License

Canada has legalized cryptocurrencies and implemented a legal framework to regulate them.

These assets are allowed to be used for investments and the purchase of goods or services.

The Canadian Securities Commission coordinates the work of regional regulators such as the powerful Ontario Securities Commission.

An important step was the decision to control not only the issuance of cryptocurrencies but also the activities of digital coin exchanges.

In 2021, Canadian regulators announced that crypto exchanges must obtain a primary license for crypto exchanges — MSB license presented on the site, implementing measures against money laundering and terrorist financing in the country.

To obtain a certification, companies must register as a money service business.

This will make it possible to offer clearing and settlement services for digital assets and fiat money.

It is issued by the Canadian regulator FinTRAC after going through a multi-stage process: 

  • registration of a legal entity;
  • preparation of documentation — business plan and AML/KYC policies;
  • online interviews and filling out forms on the FinTRAC website.

The advantage of an MSB license in Canada is permission to work in the domestic market and serve foreign clients.

The obtained MSB license will confirm the reliability and transparency of your business for partners and clients.

This creates a competitive advantage against the background of illegal or semi-legal crypto exchanges, which are at constant risk of fines and blocking.

MSB License,

The Opportunity To Legally Run Your Business

An MSB license in Canada is a mandatory requirement for the legal operation of a crypto exchange or platform for converting cryptocurrencies and fiat funds.

Obtaining a registration demonstrates the integrity of the business, compliance with all regulations and standards opens access to the Canadian crypto market, and the opportunity to work with foreign clients.

However, if the company does not open crypto wallets or hold clients’ crypto assets for a period, additional certification from the Securities Commission is not required.

Independently preparing a package of documents and registering with FinTRAC is a rather complicated process. That is why experienced SBSB lawyers recommend turning to professionals to obtain an MSB registration as quickly as possible, without committing violations by the regulator.

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