If it seems that a crypto business has already passed the period of its extreme popularity, this is only another market cycle that has ended only. In fact, the future is after Blockchain technology and cryptocurrencies. The question is only which jurisdiction to choose and leverage the maximum profits from your company during the next market cycle that will start very soon.
Given the overall instability of the USA – which was a global leader in cryptos for many years – it is quite reasonable to switch the focus to other market leaders. In this context, Canada shows extreme resilience and potential for high yields. It is easy to obtain a crypto license in Canada, provided that you follow all of the applicable rules.
Canada offers a perfect combination for doing business – a transparent legal environment and a huge variety of opportunities for financial growth. This jurisdiction is open to innovations and new entrepreneurial ideas. However, this is not the last reason to choose it, whether you want to launch a crypto or any other business.
Why Canada Is a Good Destination for Prospective Crypto Projects?
There are many reasons in favor of choosing Canada for your future crypto projects. These companies may become really successful in the local market and the global arena, given the following peculiarities of the Canadian market:
- Known worldwide for its safety and stability. The Canadian economy is characterized by the strong economy and political systems that give strong security both for local and foreign entrepreneurs.
- Overall openness to innovations and non-standard solutions. Where other countries demand a bunch of documents and regulatory approvals, Canada approaches each case individually. It does require some approvals or regulations yet it is limited to the essentials only, without exhausting the commercial projects with the useless bureaucratic paperwork. If you have some innovative or non-standard idea, Canada is the right place to bring it to reality.
- Strong and clear regulatory framework. There is no room for ambiguity and loopholes when it comes to Canada. The local regulators manage to elaborate on clear and transparent regulations that cover the vast majority of practical cases and ensure a transparent environment overall.
- Open to international investors. Canada is very interested in attracting foreign capital, especially to the financial sector. Both locals and foreign investors enjoy the same set of rights when running any type of business.
Entering the Canadian Crypto Market: All You Need to Know about Licensing
Licensing is an essential precondition for the vast majority of crypto projects to work in the Canadian market. It confirms that a legal entity is 100% compliant with the applicable regulations and is trustworthy to work with.
When it comes to Canada, we don’t speak about licensing in its classical meaning. The applicable laws envisage that a company willing to carry out activities with cryptocurrencies has to register as a Money Service Business (MSB) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). This regulator is in charge of oversight of the crypto market.
The specific licensing process slightly varies depending on the type of activity. Nonetheless, the basic milestones remain the same:
- Prepare a detailed business plan. It will be equally important to bring clarity about your future project and explain its essence to the regulator also.
- Register a local business entity. If you plan to work on a larger scale, establishing a separate legal entity is essential.
- Draft applicable policies. Above all, this touches on AML/KYC rules. Aside from those, you also need to have detailed security policies. In addition, you have to be ready to explain which technical facilities you possess for your future crypto project in Canada.
- Search for the personnel with sufficient reputation and qualifications. You will need to have a company director and a compliance officer in your staff at least. However, the more complicated and extensive your activity is, the more qualified staff you need. You will also need to ensure sufficient internal procedures to check their qualifications and performance, as well as ensure proper training.
- Fill out pre-registration forms on the FINTRAC website. It requires initial details about the future crypto project.
- Pass interviews with the FINTRAC officials. Once the preliminary assessment is done, the regulator schedules interviews with the company’s officials.
- Submit detailed self–assessment forms and a questionnaire. You will have to submit detailed information about your business and provide all of the requested documents. Once they are reviewed by the regulator, you can obtain the confirmation of approval or rejection.
If you want to know more about the types of activities that require licensing in Canada, requesting professional legal consultation may be of great help. Normally, it covers a comprehensive review of your case and the elaboration of a personalized registration plan. Skilled attorneys can help to license and make your crypto project in Canada work smoothly and bring high yields in the end!
Start a Crypto Company in Canada Today and Enjoy Your Market Share Tomorrow!
Launching a crypto project is often a challenging assignment, given the lack of clear and precise regulations in many countries. If you are not happy with staying in the “grey” zone yet want to enjoy high yields, Canada is for you then.
This stable and developed country offers a vast range of commercial opportunities and steadily remains open to new ideas. Nonetheless, it also brings clarity to any business regulation. Doing business here is a good idea for these reasons. But, if you have this commercial objective in mind and don’t know how to arrange full compliance with the local laws, Fintech Harbor Consulting is ready to assist you.
When you need help navigating the complexities of crypto licensing in Canada, seeking professional advice can ensure that you’re fully prepared for the process. Experienced attorneys can assist you with entering the Canadian market smoothly as well as further support your project. This endeavor has direct implications on ensuring the overall compliance, profit increase, and the company’s growth in the end. Make your project work and prosper in Canada easily!
