You must obtain a Canadian MSB license to conduct legal and financial activities. It provides an opportunity to engage in a wide range of financial services and actively expand your business. The state’s favorable political and economic environment will facilitate efficient operations and increase capital.
Compared to European countries and the United States of America, Canada’s financial system overcame the global economic crisis. It suggests that Canada has one of the most stable and stable atmospheres, allowing for practical financial activities.
The benefits of starting a business in Canada are as follows:
- very stable economy;
- developed infrastructure;
- innovative technologies;
- low level of corruption;
- investor protection is ensured at the legislative level.
Suppose your company plans to operate in the non-banking money services industry. In that case, you will need to carefully review the legal framework and the demands of the relevant financial regulatory authorities. It applies to registering a company, maintaining financial records, and ensuring the safety and reliability of the services provided.
To successfully pass permitting, you must meet specific demands. The actual office of the firm must be located within the borders of this area, and the firm must be registered with FINTRAC. The company’s activities must include an AML and KYC policy, and responsible persons must be appointed for compliance with these demands.
All management and employees of the organization must provide a certificate confirming the absence of a criminal record from the country of which they are citizens. And at least one director must have practical experience in the financial sector. The firm must also follow the rules for identifying its customers and regularly maintain financial statements and audits. If suspicious transactions are identified, it is necessary to notify the competent authorities.
Consider receiving a permit, which can take approximately 3 months. And it will still take three weeks to open an account and be able to start financial activities.
Basic data about the firm, activities, managers, and employees is formed at this stage. The budget of the business project and the scale of action are determined. An AML and FT (anti-financial terrorism) program is being developed. A preliminary analysis of the project is carried out.
It is necessary to choose a unique name for the firm to purchase or rent an office in Canada (a purchase/sale agreement or a lease agreement is provided). It is also necessary to decide on the authorized capital and collect all corporate papers; if there are copies, they must be notarized. Next, a staff member with practical experience in the financial sector is selected. If all papers are in order, the firm will be successfully registered and assigned a legal address.
Opening an account can be done in parallel with registering a company to reduce the time required to obtain a license. To do this, you must collect all the necessary documents certified by a notary. Negotiations are also conducted with a bank representative during the entire account opening process (direct support), and the authorized capital is added to the account. Once the account is officially opened, the company will comply with the tax authorities. It comes under the supervision of the head as a provider of virtual assets.
The documents necessary to conduct cryptocurrency activities by the AML/FT program are prepared. Adaptation and training of employees are carried out. An application for licensing is then submitted. FINTRAC may request additional data during discussions with its representative.
At the last stage, after reviewing and checking the entire package of documents and fulfilling requirements, the company will be issued a permit to conduct financial activities, which FINTRAC will publish.
This area is the most promising state for developing financial activities related to cryptocurrency. A reliable financial system, government support for investors, and innovative technologies allow you to engage in activities and increase your capital comfortably. For legal actions, it is enough to fulfill simple requirements and correctly draw up documents, and registration with licensing will be successful.