The EU Council recently adopted a comprehensive set of rules called Markets in Crypto-Assets (MiCA) that is expected to come into effect in 2024. MiCA brings crypto-assets, crypto-assets issuers and crypto-asset service providers under a strict regulatory framework.
The new rules cover issuers of asset referenced tokens, utility tokens and ‘stablecoins’. MiCA also covers service providers such as trading platforms and digital wallets where crypto-assets are held. Many service providers that will be affected by MiCA are looking to Canada as a favourable jurisdiction for MSB (money services business) registration.
Why A Canadian MSB Makes Sense?
While Canada has a positive international reputation of being a trusted regulatory regime for money services businesses, the MSB application process is relatively fast and in-expensive.
At this time, Canadian MSBs are not required to prove financial capacity during the application process or provide substantial financial bonds. Furthermore, there are currently no government filing fees or renewal fees for MSBs in Canada.
MSB activities in Canada include the following:
- dealing in virtual currency;
- money transfer services/payment remittance services;
- payment service provider services;
- foreign exchange dealing;
- crowdfunding services; and
- issuing or redeeming money orders, travellers’ cheques or other similar negotiable instruments.
Use a Canadian Law Firm
When dealing with MSB matters in Canada, we strongly recommend you use reputable and experienced Canadian lawyers. Compared to non-Canadian consultants/lawyers, an experienced Canadian lawyer will almost always be more knowledgeable about relevant Canadian legislation, such as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations. Moreover, a skilled Canadian lawyer will generally have more experience dealing with Canada’s national financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), as well as other corporate and legal matters that may be relevant for your business.
Patrola Law is one of Canada’s leading law firms for MSB and FINTRAC related matters. We work extensively with local and international clients on MSB application matters, compliance and regulatory matters involving FINTRAC, and related corporate and intellectual property matters.
Please call us directly at (778) 565-4700 or simply fill out our contact form to schedule a free consultation.
The preceding content is for informational purposes only and does not constitute legal or professional advice. To obtain such advice, please contact our offices directly.