License for cryptocurrency exchange in Canada

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:

Cryptocurrency mining;
Trading activities of the company related to cryptocurrencies;
Activities for the provision of cryptocurrency payment services;
ATMs for cryptocurrency exchange;
Cryptocurrency exchange platforms.

Basic requirements for the company

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:	Information about opening a bank account; Information about the compliance officer; Data on the number of personnel and organizational structure; Corporate documents of the company; Information about the registered legal address; Data of business owners and senior management of the company; Estimation of the number and amount of annual transactions; AML/CTF policy and related procedures.

Services offered by us within the framework of obtaining a license.

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:

✔ legal analysis of the prepared documentation prior to submitting the application;
✔ translation and notarization;
✔ preparation of a complete set of documents, filling out the application, and support;
✔ preparation of procedural documentation in accordance with AML/KYC requirements and other company policies;

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

Stages of obtaining a license to conduct activities with cryptocurrency

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.

STAGE 1

REGISTRATION OF A COMPANY, REGISTRATION OF A LEGAL ADDRESS, HIRE EMPLOYEES.

STAGE 2

SELECTION OF THE OPTIMAL FINANCIAL INSTITUTION FOR THE PURPOSE OF OPENING ACCOUNT FOR THE FORMATION OF AUTHORIZED CAPITAL AND OPENING SUCH ACCOUNT.

STAGE 3

PREPARATION OF DOCUMENTS AND OBTAINING A CRYPTOLICE LICENSE.

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