Why Canada?
Advantages
- Transparent regulation. Canada is one of the first countries to introduce regulation of cryptoassets.
- Recognition in the international arena. Canada is a member of the FATF, and as a result, there is a high level of global trust in Canadian-registered companies.
- Flexibility of the corporate structure. It is possible to start a company without resident directors.
Limitations
- High standards in the field of crypto activities. Canada emphasizes AML/KYC compliance, has established rules on regular reporting, etc.
- Possible difficulties with banking. Canada's major banks remain cautious about crypto-business.
- High financial requirements for crypto providers providing services with an investment element. The capital requirements for such companies can range from USD 710,000 - 1,420,000.
Who's right for Canada
- Crypto exchanges.
- Brokers and custodial platforms.
- Payment cryptoservices.
- DeFi projects.
Cost
The level of expenses for legalization in the jurisdiction is low (high in case of investment activities).
- Company formation fee: from USD 200 to USD 250.
- Authorized capital: there are no requirements for the minimum amount of the authorized capital.
- State fee for license application: free of charge for MSB (Money Service Business*) licensees.
- Annual state license fee: none.
* Money Service Business - companies providing crypto exchange, processing, brokerage services.
Main stages of legalization
Registering a company in Canada
- Filing of documents with the registry.
- Appointment of director and shareholders.
- Obtaining a Business Number.
- Registration for taxation.
Cryptolicensing in Canada
- Preparation of documents and necessary information.
- Filing.
- Negotiations with representatives of the regulator.
- Application Approval.
- Registration.