Published: 22.05.2018 blog
Canada is the first country in the world to approve anti-money laundering (AML) regulation for cryptocurrency service providers. The government started by using provincial security laws originally designed for money service businesses and applied them to cryptocurrencies as well.
From June 2021, every cryptocurrency exchange in Canada must register with FinTRAC (Canadian Financial Transactions and Reports Analysis Center) and be licensed as securities dealers to operate in Canada.
If the company provides the following services, then it is mandatory for it to register with FinTRAC and obtain a Money Service Business (MSB) license in Canada:
|Authorized share capital||from 5 000 USD|
|Taxation||Basic corporate tax rate, including federal and provincial corporate tax – 38%|
|Requirements for board members and employees||At least one director (a private individual with experience in the financial sector).|
The person responsible for AML/CTF should be appointed at the start of operations.
There is no mandatory residency requirement for the Directors and responsible persons for AML.
|Office availability||Proof of a registered legal address is required.|
|To obtain an MSB license, you must submit a package of documents to FinTRAC, which includes:|
LEGAL ADVICE ON THE POSSIBILITY OF OBTAINING A LICENSE, TAXATION, OPENING A BANK ACCOUNT
SEARCH AND HIRING EMPLOYEES
FULL LEGAL SUPPORT FOR COMPANY REGISTRATION
ASSISTANCE IN PREPARING DOCUMENTS FOR OBTAINING A LICENSE:
OPENING ACCOUNT IN PAYMENT SYSTEM OR BANK
COORDINATION WITH THE REGULATOR IN THE PROCESS OF CONSIDERATION OF THE APPLICATION FOR OBTAINING A LICENSE
FORMING A LEGAL ADDRESS
ACCOUNTING AND LEGAL SUPPORT OF THE COMPANY
First of all, it is worth deciding on the direction of your company’s activity, the expected amounts of income and the operations performed in order to correctly calculate all the nuances. From these facts will depend on the size of the initial authorized capital, the amount of the annual fee and additional costs that may arise during the activity.