In developed countries, all entrepreneurs understand that it is beneficial for them to work officially. Even though they pay pretty high taxes, they receive certain guarantees. If you want to learn how to get an MSB license, here https://gofaizen-sherle.com/crypto-license/msb-in-canada you can find everything you need. The company employs professionals who understand how licensing works in Canada and are ready to share their experience.
What is a license, and why is it needed?
Throughout the existence of humanity, malefactors have appeared who want to profit by deceiving civilians. Different countries create special laws and regulatory bodies that monitor their implementation to prevent this. A company must apply to government agencies and declare its desire if it wants to provide financial services.
In Canada, a well-thought-out legislative framework has been created that regulates the work of financial non-banking institutions. To work here legally, entrepreneurs must obtain a special permit; otherwise, state authorities may recognize them as intruders.
In addition, in Canada, there are significant penalties for non-payment of taxes. In the most challenging cases, the state can completely close an institution that refuses to pay taxes.
You should get a special license if you decide to open a financial business and do not want to have legal problems. It will allow you not only not to be afraid for the security of the company but also to develop more harmoniously since the presence of a license increases the level of trust on the part of customers.
It is worth noting that crypto exchanges are equated to other financial non-banking institutions in Canada. It makes it as easy as possible to regulate the work of the crypto industry.
How to get a license?
Practice shows that obtaining a license is a rather complicated process that requires a good knowledge of legislative norms.
Obtaining an MSB license can be divided into 3 large stages:
- Company registration in Canada;
- Pre-registration in FINTRAC and interview;
- Registration for a license.
The whole process generally takes more than 1.5 months if you do not have any problems with the documents.
All financial institutions must meet specific requirements. You can provide various services (transactions, currency exchange, check to cash, and more). However, the requirements for all are about the same.
The first thing that matters is the level of trust. Neither the owners, the employees, nor clients had been previously involved in fraud. If you have previously had problems with the law or a criminal record, then there is a very high probability that you will be refused.
Obtaining a license is not immunity. Government agencies may revoke this if they notice signs of fraud in your work. So, you must regularly provide reports on employment, transactions performed, and other points.
Conclusion
If you cannot or do not want to understand all legal issues, then you can seek the help of specialists. They will not only advise on how to do everything as correctly as possible, but they can also take care of the paperwork.