If you want to pursue a professional financial services business and go international, you will need to get a special license permit. This is similar to obtaining a driver’s license buying a car. Here you should ask yourself which license to choose between many another. Below we will discuss the reasons for obtaining an MSB license in Canada – one of the best solutions to follow business with transmitting and converting money.
More about MSB
MSB is an abbreviation for a business, the key feature of which is the provision of monetary services and the performance of any activity related to virtual money transfers, money transactions in general, currency exchange in Forex, issuing or redemption of checks, etc. This implies that if you plan to do any of the above businesses in Canada, you will first need to obtain an MSB license or to purchase a ready-made one.
MSB license is required for companies that are registered in Canadian jurisdiction. However, you can obtain an FMSB license for a business that is registered outside of Canada and act as a money service provider in other jurisdictions. There is no difference in the essence of business activity, but by making such a decision, you will have the opportunity to enter the Canadian market with an already active and ready-to-operate business. The only thing that is required of you is the involvement of a local representative director.
Reasons to choose Canada
The Canadian jurisdiction is one of those where the Fintech market has bloomed over the past three years. As forecasts say, this situation is not likely to change in the nearest future. The government of that country has focused on the Fintech sector with a commitment of $ 755 million. It is expected that this contribution will pay off and increase up to $2 billion. Undoubtedly, these indicators are identifiers of stability and prosperity.
In addition, blockchain technology is well developed and widespread in Canada. According to the 2019 Canadian Blockchain Census, it is estimated that contributions to the blockchain will amount to $ 644 million by 2023, an increase of several hundred million compared to 2019.
In turn, the new Canadian legislative framework, which came into force in June 2020, opened up new opportunities for crypto exchanges to operate, giving them full permission, as well as for payment operators who work with cryptocurrencies.
All of the above makes Canada one of the best jurisdictions for Fintech businesses.
Benefits of an MSB Canada license
There is no specific amount of start-up capital set for obtaining an MSB license in Canada. Compared to an EMI license valid in the UK, this is a huge advantage, since there the authorized capital must be at least 350 thousand euros. The same statements are connected also to Lithuanian EMIs. In order to open a money service business in the Canadian jurisdiction, you will need to register a company, involve one resident director and 1 anti-money laundering officer who is also a resident.
The financial sector in Canada has the status and reputation of a safe, reliable and stable system. The reason for this was the dominance of large banking institutions, which underlined historical steadfastness. Today, the financial industry has begun to develop in open banking, which may also lead to the emergence of new opportunities for new and existing companies.
The procedure for obtaining an MSB license in Canada can take from two to five months. Compared to other types of European financial licenses, this is quite fast. An EMI license in a European country is prepared in a period from six months to twelve months. As per ready-made decisions registering changes with BC registrar will take 1-2 days and approval of the new UBO with regulator (FINTRAC) will be during 1-2 weeks. This is another important reason why Canada should be preferred.
As we can conclude, there are several good reasons for opening an MSB in Canada. This jurisdiction has an attractive international reputation, so new companies are almost 100% likely to be considered reliable enterprises, which is incredibly important when working in the financial sector. If you make a positive decision, you can get an MSB license in Canada with the help of our specialists, with whom you can contact at a convenient time for you.
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