Introduction
Did you know that the Canadian cryptocurrency market is worth 1.74 billion USD? More than 7 to 8 million users trade commodities with crypto coins. Similarly, customer penetration in the market has increased to 29.36%.
Therefore, it shows that Canadian laws are open to citizens to trade with the help of cryptocurrency. Consequently, to trade in crypto coins, you need to have a license to help people and businesses to trade and conduct trade.
So, in the next section, we will discuss ways to access Canada’s Crypto License.
What is the Canadian MSB License?
To open a company in Canada, it is necessary to have certain special certificates provided by the state authority. This allows the company to carry out various activities, including –
You can trade commodities with cryptocurrencies under Canadian laws and legislation.
You can access various payment services, cryptocurrency ATMs, and a currency exchange platform.
Lastly, you can mine crypto coins and conduct subsequent trading with them.
Moreover, it also allows foreign people to obtain a canada crypto license and conduct their business with it. However, they provide the permit for two years, and when the permit expires, you send an official letter to extend it.
However, there are certain restrictions associated with people who are convicted of money laundering or terrorist financing. In addition, if you are associated with any criminal organization, Canadian laws will restrict you from getting a crypto license.
Requirements for Crypto License in Canada
To get a crypto license in Canada, you must meet essential requirements to ensure that you are a legal entity and can deal with cryptocurrencies. Therefore, it is important for a Canadian MSB to have at least one shareholder, one director, and one compliance officer. However, Canadian law allows one person to hold all the positions under their name.
That way, you can manage the whole process of crypto mining yourself and also the way you want to use it. Furthermore, per the FINTRAC, you need to have a proper business structure to obtain a Canada Crypto License. This is because the compliance programs depend on the size of the company.
Here are a few guidelines for the Compliance Officer to follow –
He/she must possess all the knowledge about the company, especially its functions and structure
Proven knowledge of the ML/TF risks and the vulnerabilities, and showcase all the current trends happening in the crypto market
Has the authority and resources to include the compliance program in the business process and make necessary changes to obtain the license
Lastly, the compliance officer should possess knowledge of virtual assets and how they function in the market. Also, possessing a command over the business to ensure that the company remains compliant is a key factor in getting the license.
Disclaimer: A compliance officer doesn’t need to be Canadian. It can be a foreign individual, but they should possess knowledge of crypto and its evolving trends.
Required Documents to Access Canadian MSB License
Here are a few required documents to get your Canadian MSB License –
Biography of Compliance
Officer (provide name and ID)
Cash flow model
MSB Compliance Program
Business Plan
Company website
Besides, you should include a description of funds, especially the cash flow route from the start until it reaches MSB. Furthermore, if intermediaries are present, you need to mention their roles and functions in the process.
The Bottom Line
In the end, the Canadian government provides legal permission for citizens and businesses to trade with coins. Hence, you can look at the article where you can find ways to access a crypto license and trade through it.
You can find the relevant details and documents to access the MSB License.
FAQs
Here are a few frequently asked questions –
Do you need a license to trade cryptocurrency in Canada?
An MSB license is necessary to trade cryptocurrency in Canada and enable all payment services in perfect order.
Does Canada allow crypto?
Canadians are free to trade, purchase, and sell bitcoin, enabling them to make purchases with digital currency.
Is crypto taxable in Canada?
Crypto coins are a taxable commodity in Canada and are considered business income and capital gains.
What is the crypto limit in Canada?
The crypto limit in Canada is 100,000 CAD dollars.
