Crypto license in Canada

Canada

There is no single government-issued 'crypto license' in Canada. What the market calls a Canada crypto license is, in practice, registration as a Money Services Business (MSB) or Foreign Money Services Business (FMSB) with FINTRAC under the Proceeds of Crime…

Request a Licensing Assessment

Gilded relief map and metallic skyline silhouette of Canada on a navy base, studio-lit still life

Jurisdiction	Canada
License type	Crypto license
Regulator	Corporations Canada (Innovation, Science and Economic Development Canada)

Start Your Application

Book a Consultation

Corporations Canada (Innovation, Science and Economic Development Canada)

https://corporationscanada.ic.gc.ca/eic/site/cd-dgc.nsf/eng/home

Overview

There is no single government-issued 'crypto license' in Canada. What the market calls a Canada crypto license is, in practice, registration as a Money Services Business (MSB) or Foreign Money Services Business (FMSB) with FINTRAC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). This MSB/FMSB registration is the federal AML/CTF gateway that virtually all crypto-asset businesses dealing with Canadian clients need, and it is the route we help clients through — while flagging where additional securities-law or payments-law obligations may also apply.

Regulatory Status

Alternative

Before any FINTRAC registration can proceed, you need an incorporated Canadian company. For licensing purposes we recommend the Business Corporation (Inc./Ltd./Corp.), incorporated federally through Corporations Canada — Canada's closest equivalent to an internationally recognized private limited liability company (LLC). Other legal forms are available in Canada (see the Basic company reference), including unlimited liability companies, partnerships and cooperatives, but the Business Corporation is the standard default for a licensed crypto business.

Key known facts from the registrar:

Incorporation is filed with Corporations Canada via its Online Filing Centre, and covers the Articles of Incorporation, choice of a word name or a numbered name, and registration of an initial registered office and first director(s).
A federally incorporated company must also register extra-provincially in each province or territory where it actually carries on business.
The company must create and maintain an individuals with significant control (ISC) register, recording specified information about persons who control the corporation.
Ongoing filings include an annual return and notices of change to directors, registered office or name.
For opening a corporate bank account, founders/directors/beneficial owners will generally need to provide identification and supporting documents, consistent with obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Major Canadian banks commonly used for corporate accounts include TD Bank, Scotiabank and CIBC.

Receive a Licensing Roadmap

Request an Assessment

✦

Frequently Asked Questions

Is there an official Canadian crypto license?

No. 'Crypto license in Canada' is a market phrase. The actual federal requirement is MSB or FMSB registration with FINTRAC under the PCMLTFA; FINTRAC does not endorse or license the businesses it registers.

What is the difference between MSB and FMSB registration?

MSB registration applies to domestic operators, while FMSB registration applies to foreign entities that serve persons or entities in Canada; both are administered by FINTRAC under the same PCMLTFA framework.

Does FINTRAC registration cover securities-law obligations too?

No. The Canadian Securities Administrators have indicated that crypto asset trading platforms, broker-like models, derivatives, custody structures and dealer-like activity can separately trigger investment dealer registration and CIRO membership requirements, which must be assessed independently of FINTRAC status.

How often must MSB/FMSB registration be renewed?

FINTRAC registration must be renewed every 2 years.

Do payment-service crypto businesses have extra obligations?

Yes. If the business provides payment services such as digital wallets or online payments, the Bank of Canada requires registration under the Retail Payment Activities Act before operating.

What legal form should I incorporate for a crypto license application?

We recommend the Business Corporation (Inc./Ltd./Corp.), incorporated federally through Corporations Canada, as Canada's closest equivalent to an internationally recognized LLC and the standard default for licensing purposes.

What happens if a registered MSB/FMSB does not comply with its obligations?

FINTRAC can refuse or revoke a registration and can impose administrative monetary penalties for non-compliance with the compliance program, reporting and records-retention requirements.

✦