If it is a universal financial licence, then it is a Canadian MSB.

Financial technologies and cryptocurrency projects are increasingly entering the global market. However, without a reliable jurisdiction and transparent regulation, it is difficult for companies to establish cooperation with banks, payment solution integrators, and other infrastructure participants.

Thanks to its stable economy, international trust and well-thought-out legislative framework, Canada is an ideal platform for starting and scaling a fintech business. An MSB (Money Services Business) licence is the key to legal and sustainable work with currency exchange, money transfers, crypto assets and financial intermediary services.

What is an MSB licence?

An MSB licence is issued by the Canadian regulator FINTRAC — Financial Transactions and Reports Analysis Centre of Canada. It is required for companies operating in the financial services sector. It confirms compliance with Canadian legislation, including AML/CFT (anti-money laundering and counter-terrorist financing) requirements.

An MSB licence allows you to legally provide the following services: 

• currency exchange, including fiat and digital assets;
• domestic and cross-border money transfers;
• financial intermediation between clients and banks or other institutions;
• transactions with financial instruments;
• working with cryptocurrencies and virtual assets, including exchange, purchase, storage, and transfer.

In addition, the MSB licence is increasingly becoming a prerequisite for promoting crypto services: for example, Meta (Facebook/Instagram) requires it from companies wishing to advertise cryptocurrency products and services. Thus, obtaining an MSB license opens up not only access to financial infrastructure for businesses, but also a full-fledged marketing presence in the global online space.

To successfully obtain a license, comply with all AML/FINTRAC requirements, and integrate with the banking system, it is recommended to consult with professionals who have practical experience working with Canadian institutions. This will minimise risks, speed up the registration process and ensure compliance with all regulatory standards.

Who is eligible for an MSB licence?

The MSB licence is universal and suitable for various categories of financial businesses:

• crypto exchanges and exchange platforms — for working with digital assets at the international level;
• payment systems and e-wallets — for conducting transactions between individuals and legal entities;
• financial intermediaries and agents — for providing money transfer services and working with foreign payment systems;
• currency brokers and financial advisors — for providing clients with currency exchange and transaction services;
• companies with cross-border payment solutions operating in multiple jurisdictions (a second Canadian licence is required — PSP (Payment Service Provider) — intended for fintech companies working with electronic payments within Canada).

Advantages of an MSB licence

• legal provision of financial services in accordance with Canadian law;
• transparency and compliance with AML requirements, which increases trust from clients and counterparties;
• access to international payment gateways and banks, including the ability to connect processing and merchant accounts;
• flexibility in scaling your business — you can start with one area, such as cryptocurrency exchange, and gradually expand your range of services without having to obtain a new licence;
• the ability to work with different countries and markets under one jurisdiction;
• support from the Canadian government, which is interested in attracting fintech startups and technological solutions.

Licence requirements

To obtain an MSB licence, you must meet a number of requirements and provide the following information:

• company registration in Canada with the appointment of directors and shareholders;
• initial authorised capital — from USD 10,000 (in practice, USD 50,000 is recommended for serious projects);
• proof of funds, including bank statements and financial reports;
• a business plan indicating the intended services, target audience, revenue structure and risk management model;
• information about all beneficiaries and managers, including CVs and certified (apostilled) certificates of no criminal record from the country of citizenship;
• availability of an internal or external candidate for the role of AML compliance officer, with confirmation of qualifications;
• specification of specific MSB services planned to be provided;
• notarised power of attorney from directors to submit applications and sign documents.

Registration with FINTRAC is separate from registration in corporate registers. The licence is issued within 3–5 months, provided that all documents are submitted correctly and all checks are passed.

Stages of obtaining a licence

1. Obtaining input data from the client: description of the business model, company structure, channels of interaction with clients.
2. Analysis and development of a licensing strategy, with recommendations and a roadmap.
3. Preparation of documentation, including statutory documents, agreements, AML policy, FINTRAC compliance plan.
4. Registering the company in Canada and preparing to open a corporate account.
5. Opening a bank account (often requires separate work with the bank's compliance officer).
6. Submitting a preliminary and final application for registration as an MSB.
7. Obtaining a licence and inclusion in the FINTRAC register.

Canada's tax system

Canada has a favourable tax regime for fintech businesses. Key provisions: 

• Federal income tax — 15%.
• Provincial tax varies from 11 to 16% depending on the region.
• Preferential rates apply to start-ups and small businesses.
• Possibility of registration in provinces with minimal tax burden, such as Alberta (low corporate tax).
• No dividend tax for non-residents with the correct ownership structure.
• The ability to file reports online and remotely.

Accounting and tax reporting require accuracy, especially when dealing with cryptocurrencies. It is recommended to hire a qualified accountant who is familiar with Canadian law.

Conclusion

The Canadian MSB licence is a powerful and flexible tool for launching and developing fintech and crypto businesses. Transparent regulation, international recognition and government support create a solid foundation for scaling and sustainable operations.

At the same time, the MSB licence is in demand not only as a classic financial licence, but also as a basis for legal work with cryptocurrency. It grants the right to conduct transactions with fiat and digital assets, including exchange, deposit/withdrawal of funds, and storage of cryptocurrency. This makes it an ideal solution for crypto exchanges, exchange services, custodial services, and any projects operating at the intersection of traditional and digital finance.