MSB License in Canada 2025
Crypto license in Canada: cost, timeline, requirements
An MSB License in Canada is a mandatory registration with the FINTRAC that grants businesses the legal authority to conduct financial services, including cryptocurrency exchange, money transfers, and foreign currency dealing.
Legal Compliance with FINTRAC
Federal regulation compliance builds trust with customers, banks, and institutional partners
Access to Canadian Market
Operate nationwide under single federal license without additional provincial permits required
International Credibility
Globally recognized FINTRAC license enhances credibility and attracts banking relationships
Competitive Timeline: 6-10 weeks
Fast-track licensing from company formation to FINTRAC approval in 6-10 weeks
MSB/FMSB License Packages in Canada
Company Registration & FINTRAC MSB License from Scratch
$12,500 4-6 weeks
Best choice for launching a new regulated business from the ground up.
- Initial consultation and eligibility assessment (MSB/FMSB scope & structure).
- Canadian company incorporation and Business Number registration.
- Canadian business address and correspondence handling for FINTRAC.
- Full AML/KYC/CFT compliance framework (risk assessment, policies, monitoring tools).
- Preparation and submission of FINTRAC MSB registration package.
- Step-by-step support until registration approval and compliance onboarding.
- Guidance on banking and payment provider requirements (no guaranteed account).
- Ongoing compliance officer support available upon request.
Ready-Made FINTRAC-Registered MSB Company
$19,900 1 week
Perfect for clients who need a ready-to-operate licensed MSB quickly
- Pre-registered Canadian corporation with active FINTRAC MSB registration.
- Ownership and share transfer documentation included.
- Update of FINTRAC records after ownership change.
- Complete AML/KYC/CFT compliance documentation tailored to your model.
- Canadian business address and correspondence handling for FINTRAC.
- Banking and payment provider introductions with compliance guidance.
- Post-transfer legal and regulatory support for initial reporting period.
- Optional compliance officer or ongoing monitoring services available separately.
Additional services for ongoing operations
PSP Authorization from Bank of Canada with your documents (only for money remittance or payment service provider)
- Government fees 2500 CAD$
- Review of business model
- Review of AML/KYC, risk management and incident response policies, filling and submitting application for PSP license, legal support, notification of FINTRAC
AML / Compliance Officer
Provision of local AML/Compliance officer (part-time)
Corporate account opening
Assistance in opening corporate account in local bank or payment system
Tailored AML/KYC Policy
Tailored anti-money laundering and know your customer policies designed individually by blockchain and financial matter lawyer
Get Initial Consultation on Montana Crypto MSB License
We deliver end‑to‑end Montana company formation and FinCEN MSB licensing for a fixed fee.
1 Discovery call
2 Paperwork
Filing & Approval
What is MSB License in Canada?
Canada’s MSB framework is regulated by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This federal registration allows crypto companies to legally operate across all Canadian provinces and territories without needing separate state-by-state licenses.
The framework offers two paths: MSB for companies with Canadian presence, and FMSB (Foreign Money Services Business) for international companies serving Canadian customers. Both require AML/CTF compliance but differ in setup requirements. FINTRAC registration itself is free with no minimum capital requirements.
Why Canada for Crypto Business?
- No Minimum Capital Required. Unlike many jurisdictions requiring $100,000+ in capital, Canada has no official minimum. FINTRAC registration itself is free. You only need sufficient funds to operate and maintain compliance.
- Single Federal License. One MSB license covers all 10 provinces and 3 territories. No need for separate licenses in each province like in the USA where you need state-by-state MTL licenses.
- Fast Approval Process. FINTRAC typically reviews applications in 2-4 weeks. Total timeline from company formation to approval: 6-10 weeks. Compare to EU jurisdictions requiring 6-12 months.
- Globally Recognized Framework. FINTRAC aligns with FATF (Financial Action Task Force) standards. Canadian MSB license is recognized internationally, making it easier to establish partnerships and banking relationships worldwide.
- Foreign-Friendly FMSB Option. Already have a company abroad? Apply for FMSB without incorporating in Canada. No Canadian office required. Not subject to Canadian corporate tax. Unique option not available in most jurisdictions.
- Banking Access. Canadian banks are more crypto-friendly than most countries. MSB license significantly improves your chances of opening corporate accounts. Essential for fiat on/off ramps and payment processing.
Services You Can Provide with MSB License in Canada
FINTRAC defines 5 money service activities. You can register for one or all services. A single MSB license covers all registered activities nationwide.
Virtual Currency Exchange
Exchange cryptocurrencies for other cryptocurrencies (crypto-to-crypto) or for fiat currencies (crypto-to-fiat).
- Crypto-to-crypto trading (BTC/ETH, etc.)
- Crypto-to-fiat exchange (BTC/CAD, ETH/USD, etc.)
- Fiat-to-crypto onramp services
Note: Stablecoin operations require additional authorization from Canadian Securities Administration (CSA).
Foreign Exchange Dealing
Exchange one fiat currency for another (USD to CAD, EUR to GBP, etc.).
- Currency exchange services
- Multi-currency accounts
- International payment processing
Money Transfers and Remittance
Transmit funds between persons or entities using electronic funds transfer networks, including credit/debit card payments.
- Domestic money transfers
- International remittance services
- Electronic funds transfers (EFT)
- Payment processing services
Payment Instruments
Issue or redeem money orders, traveler’s checks, or similar negotiable instruments (excludes cashing checks to specific persons).
- Money orders issuance and redemption
- Traveler’s checks
- Similar negotiable instruments
Crowdfunding Platform Services
Operate crowdfunding platforms for third parties to raise funds or virtual currency.
- Token sale platforms
- Initial Coin Offerings (ICO) platforms
- Fundraising platforms for crypto projects
Flexible Licensing Approach
- Register for one or multiple service types
- Add services later by updating FINTRAC registration
- Report changes to FINTRAC within 30 days
- Operate nationwide under single federal license
Types of MSB licensing in Canada
- MSB license in Canada is for companies registered and operating within Canada with physical presence.
- FMSB license is for foreign crypto companies that provide services to Canadian market from outside Canada.
Both must comply with FINTRAC regulations, but FMSB doesn’t require Canadian incorporation or office and is not subject to Canadian corporate tax.
Criteria
MSB (Money Services Business)
FMSB (Foreign Money Services Business)
Business Location
Canada-based company
Foreign company (registered outside Canada)
Physical Office
Required in Canada (no virtual offices)
Not required in Canada
Target Market
Canada and international markets
Must serve Canadian customers
Requirements
Canadian legal entity, physical address, local presence
Foreign entity demonstrating Canadian market focus
Taxation
Subject to Canadian corporate tax (15% federal + provincial)
Not subject to Canadian corporate tax
Best For
Companies establishing full Canadian presence and operations
International companies expanding to Canadian market
Requirements for MSB License in Canada
Company Setup
- Legal entity in Canada: Corporation registered in any Canadian province
- Physical office: Real office address required (virtual offices not accepted)
- Share capital: No minimum required. Recommended 10,000 CAD (~7,300 USD)
- Registration with FINTRAC: Free of charge
Key Personnel
- Compliance Officer: Certified AML/Compliance Officer (can be foreigner)
- Directors and shareholders: Criminal record checks required (translated and notarized)
Compliance Program
- AML/KYC/CFT policies: Anti-money laundering, customer verification, terrorist financing prevention
- Risk assessment: Tailored to your business operations
- Transaction monitoring: System to flag suspicious activity
- Record keeping: All transactions records for minimum 5 years
- Reporting: Suspicious transactions and cash over $10,000 CAD to FINTRAC
Required Documents
- Business registration and incorporation documents
- Complete AML/KYC/CFT compliance manual
- Business plan with financial projections
- Ownership structure and beneficial owners details
- Background checks for all shareholders and directors
Important Notes
- Stablecoins: Require additional authorization from Canadian Securities Administration (CSA)
- Payment services: May require registration with Bank of Canada under RPA Act
- Provincial registration: Some provinces (Ontario, Quebec) require additional business registration
How to Obtain MSB License in Canada
Total timeline: 6-10 weeks. We handle the entire process for you.
- 1
Preparation and Documentation
1-2 weeks- Preparation of essential documents
- Preliminary project analysis and business description
- Development of AML/CTF policies
- Collection of KYC information
- Definition of project scope and budget
- 2
Company Registration in Canada
1 week- Company registration under an approved name
- Registration of a legal office address
- Selection of a suitable name (must contain at least two words)
- Execution of office lease agreements
- Determination of share capital
- 3
Pre-application and Registration
1-2 weeks- Adaptation of documents for AML/CTF compliance
- Recruitment of required employees
- Submission of license application
- Collection of requested documentation
- Negotiation with FinTRAC representative
- Compliance with FinTRAC requirements
- Submission of documents to FINTRAC
- Leading client negotiations with the regulator
- Provision of full support throughout the registration process
- 4
FINTRAC Review
2-4 weeks- FINTRAC evaluates application completeness
- Review of compliance program quality
- Background verification of key personnel
- Assessment of business model and risk factors
- Possible requests for additional information or clarification
- Response to FINTRAC queries and deficiency notices
- Ongoing communication with FINTRAC representative
- 5
Approval and Issuance of License
2-3 days- Final approval by FINTRAC
- Issuance of official MSB registration number
- Company listed on FINTRAC public registry
- Legal authorization to commence MSB operations
- Receipt of confirmation documents
- 6
Post-Registration Compliance (Ongoing)
- Implement AML/KYC/CFT procedures
- Report suspicious transactions to FINTRAC
- Report large cash transactions over $10,000 CAD
- Keep transaction records for 5+ years
- Update FINTRAC on business changes within 30 days
- Renew registration every 2 years (free)
Why Canada for Crypto Business?
- Company incorporation and office setup
- Complete AML/KYC/CFT compliance program development
- All FINTRAC forms and documentation
- Communication with FINTRAC throughout process
- Compliance officer appointment assistance
- Bank account opening support
Get Initial Consultation on Montana Crypto MSB
We deliver end‑to‑end Montana company formation and FinCEN MSB licensing for a fixed fee.
1 Discovery call
2 Paperwork
Filing & Approval
Post-License Compliance Requirements
Ongoing Obligations
- AML/KYC/CFT implementation: Follow your compliance program daily
- Customer verification: Verify identity for all clients according to KYC procedures
- Transaction monitoring: Monitor all transactions for suspicious activity
- Suspicious transaction reporting: Report to FINTRAC immediately when detected
- Large cash reporting: Report all cash transactions over $10,000 CAD to FINTRAC
- Record keeping: Maintain all transaction records for minimum 5 years
- Periodic reporting: Submit required reports to FINTRAC on schedule
- Business changes: Update FINTRAC within 30 days of any changes (address, ownership, services)
- License renewal: Renew registration every 2 years (currently free)
- Compliance review: Conduct mandatory program review before each renewal
Penalties for Non-Compliance
- Administrative penalties: Fines from $1 to $100,000 per violation
- Criminal charges: Up to $500,000 fine and/or 5 years imprisonment for serious violations
- License revocation: FINTRAC can revoke your MSB registration
- Public record: Violations listed on public FINTRAC database
- Director liability: Directors can be held personally liable
Taxation for MSB Companies in Canada
MSB companies in Canada have two separate tax obligations: Corporate Income Tax (tax on your company’s profit) and GST/HST (sales tax collected from customers and remitted to government).
Corporate Income Tax
This is tax your company pays on its profits. Depends on province of incorporation.
Federal Tax:
- General rate: 15% on taxable income
- Small business rate: 9% on first $500,000 CAD (if qualified as CCPC)
Provincial Tax:
- Ontario: 11.5%
- Alberta: 8% (lowest in Canada – most tax-efficient choice)
- British Columbia: 12%
- Quebec: 11.5%
Effective Combined Rate:
- Federal 15% + Provincial 8–16% = 23% to 31% total
- Small business: Federal 9% + Provincial = 17% to 25% on first $500,000
GST/HST
This is tax you collect from customers on behalf of government and remit. Not your expense – you’re just a collector.
- GST (Federal): 5% on taxable supplies
- HST (Harmonized): 13–15% depending on province (Ontario 13%, Nova Scotia 15%)
- How it works: Add GST/HST to your service price, collect from customer, remit to CRA
- Exempt services: Some financial services may be GST/HST exempt
- Registration: Mandatory if revenue exceeds $30,000 CAD annually
- Filing: Quarterly or annual GST/HST returns
Important Tax Notes
- FMSB exemption: Foreign companies (FMSB) are NOT subject to Canadian corporate tax
- Tax filing: Corporate tax returns due 6 months after fiscal year-end
- Crypto taxation: Crypto transactions subject to same tax rules as other assets
Key Legislation and Resources
These descriptions provide a quick overview of each authority’s main purpose and its role in the regulatory landscape for obtaining MSB license in Canada.
- Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
FINTRAC serves as Canada’s financial intelligence unit, tasked with detecting and preventing money laundering and terrorism financing.
It collects and analyzes financial transaction reports from regulated entities, including MSBs, to ensure compliance and safeguard the financial system. - Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
This act sets the legal framework for combating money laundering and terrorist financing in Canada.
It mandates MSBs to implement robust compliance programs, perform due diligence, and report suspicious transactions to help prevent financial crimes.
Enacted in 2000, last amended in 2024. - Ontario Business Registry
This registry is essential for businesses operating in Ontario, providing a platform for business registration, filing, and compliance.
It ensures that all business entities, including MSBs, adhere to provincial regulations and maintain transparency in their operations. - Canada Revenue Agency (CRA)
The CRA is responsible for the administration of tax laws for the Government of Canada and for most provinces and territories.
MSBs must comply with tax regulations, including reporting their earnings and paying taxes, as part of their operational requirements.
Other Jurisdictions
FAQ — Canada MSB
Is cryptocurrency business legal in Canada?
Yes, cryptocurrency business is fully legal in Canada under the Money Services Business (MSB) framework regulated by FINTRAC. Companies must register as MSB (domestic) or FMSB (foreign) to legally offer crypto exchange, transfer, and related services.
What's the difference between MSB and FMSB?
MSB is for Canadian-based companies with physical presence in Canada. FMSB is for foreign companies serving Canadian customers without Canadian incorporation. Both require FINTRAC registration and AML/CFT compliance, but FMSB doesn’t require Canadian office or incorporation.
Can foreign companies get MSB license without Canadian entity?
Yes, through FMSB (Foreign Money Services Business) registration. Foreign companies can obtain license without incorporating in Canada, provided they serve Canadian customers through marketing, .ca domain, or Canadian business directory listing.
What's the minimum capital required for MSB license?
There is no official minimum capital requirement from FINTRAC. However, based on industry practice, we recommend 10,000 CAD (~7,300 USD) as share capital to demonstrate serious intent. You need sufficient funds to operate and maintain compliance programs.
How much does MSB license cost?
FINTRAC registration itself is free. Total costs include company setup, compliance program development, and professional services. Our packages range from $8,500 (new company) to $22,900 (ready-made company with active license).
Do I need a physical office in Canada?
Yes for MSB (domestic license). Physical office address is mandatory – virtual offices are NOT accepted by FINTRAC. No for FMSB (foreign license), but you must demonstrate service to Canadian market through other means.
Can I use a virtual office address?
No. FINTRAC explicitly does not accept virtual office addresses for MSB registration. You must have a real physical location with actual business operations in Canada.
Do I need a compliance officer?
Yes, appointing a certified AML/Compliance Officer is mandatory for both MSB and FMSB registration. The officer can be a foreigner and doesn’t need to be Canadian resident, but must have relevant qualifications and experience in financial compliance.
How long does it take to get MSB license in Canada?
Typically 4-6 weeks total for new company setup. Breakdown: Preparation (1-2 weeks), FINTRAC pre-registration (1 week), Application submission (1-2 weeks), FINTRAC review (1-2 weeks), Approval (2-3 days). Ready-made company: 1-2 weeks only.
How long does FINTRAC take to review application?
FINTRAC typically reviews applications in 1-3 weeks after submission. Timeline depends on application completeness, complexity of business model, and how quickly you respond to any clarification requests from FINTRAC.
Can the process be expedited?
FINTRAC doesn’t offer expedited processing. However, you can speed up the process by: ensuring complete and accurate application, responding quickly to FINTRAC requests, having all documents ready upfront. Ready-made companies are fastest option (1-2 weeks).
What services are covered by MSB license?
MSB license covers 5 money service activities: 1) Virtual currency exchange (crypto-to-crypto, crypto-to-fiat), 2) Foreign currency exchange, 3) Money transfers and remittance, 4) Payment instruments (money orders, traveler’s checks), 5) Crowdfunding platform services. You can register for one or all services.
Can I operate my MSB business online?
Yes, MSBs can operate fully online. However, you must still comply with all regulatory requirements including KYC verification, transaction monitoring, reporting to FINTRAC, and record-keeping. Physical office requirement (for MSB) remains regardless of online operations.
Can I offer services with stablecoins?
No, not without additional authorization. Canadian MSB license does NOT cover stablecoin operations. Stablecoins require separate authorization from Canadian Securities Administration (CSA) as they may be classified as securities. Standard MSB covers cryptocurrencies like Bitcoin and Ethereum.
Can I add more services after getting license?
Yes, you can add additional MSB services later by updating your FINTRAC registration. You must notify FINTRAC within 30 days of any business changes, including adding new service types. No additional license fee required.
What are the reporting obligations for MSBs?
MSBs must report to FINTRAC: 1) Suspicious transactions (immediately when detected), 2) Large cash transactions over $10,000 CAD, 3) International electronic fund transfers over $10,000 CAD. You must also keep all transaction records for minimum 5 years and submit periodic compliance reports.
How often do I need to renew my MSB registration?
Every 2 years. Renewal is currently free of charge. Before renewal, you must conduct a mandatory compliance program review (can be internal or third-party). You must notify FINTRAC of any business changes within 30 days throughout the license period.
What happens if I don't comply with regulations?
Penalties for non-compliance include: Administrative fines ($1 to $100,000 per violation), Criminal charges (up to $500,000 fine and/or 5 years imprisonment for serious violations), License revocation, Public listing on FINTRAC violation database, Personal liability for directors.
Do MSB regulations differ by province in Canada?
MSB license is federal (FINTRAC) and applies nationwide. However, some provinces have additional requirements: Ontario and Quebec require separate provincial business registration. Tax rates vary by province (8-16%). Banking requirements may differ by province. We help navigate all provincial requirements.
What are the tax obligations for MSB in Canada?
MSB companies pay: 1) Corporate Income Tax: 15% federal + 8-16% provincial (total 23-31%), small business rate 9% federal on first $500,000 CAD. 2) GST/HST: 5-15% sales tax collected from customers. FMSB (foreign companies) are NOT subject to Canadian corporate tax.
Do I have to pay tax on cryptocurrency transactions?
Yes, MSB companies must pay corporate tax on profits from crypto operations. Crypto transactions are treated like other business revenue. You need to track all transactions, calculate gains/losses, and report to CRA (Canada Revenue Agency). Consult with crypto-specialized accountant for proper tax planning.
What's the difference between new company and ready-made company?
New company ($8,500, 6-10 weeks): We create everything from scratch – incorporation, compliance, FINTRAC application. Ready-made ($24,900, 1-2 weeks): Pre-existing company with active MSB license, just transfer ownership. Ready-made is faster but more expensive, best for urgent market entry.
MSB License in Canada: From Application to Approval
$12,500
We handle the entire Canada MSB licensing process for fixed fee:
- Montana LLC incorporation
- AML/KYC compliance framework
- Business plan preparation aligned with FinCEN requirements
- Due diligence & Fit & Proper checks for directors/shareholders
- Preparation & submission of FinCEN MSB registration
- Legal guidance during the registration process
