Why Canada?
Advantages
- Transparent regulation. Canada is one of the first countries to implement regulation of cryptoassets.
- International recognition. Canada is a member of the FATF, and as such, there is a high level of trust in Canadian registered companies. There is a high level of global confidence in Canadian-registered companies..
- Enterprise device flexibility. It is possible to start a company without resident directors.
Limitations
- High standards in crypto activities. In Canada, special attention AML/KYC compliance is emphasized, rules on regular reporting are established, etc.
- Possible difficulties with banking services. Canada's major banks remain cautious about cryptocurrencies..
- High financial requirements for crypto providers providing services with an investment element. Capital requirements for such companies may 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). investment activities.
- State fee for company formation: from USD 200 to USD 250.
- Authorized capital: there are no requirements for the minimum amount of authorized capital.
- Application fee for obtaining a license: free for MSB (Money Service Business*) licensees.
- Annual 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.
- Submitting an application.
- Negotiations with representatives of the regulator.
- Application approval.
- Registration.