When you’re buying a car, you need to get a driving license in order to be able to understand the traffic regulations. If you want to enter the international market of financial services, you need to obtain a special license as well. The question is – which license to choose? In this article we will tell why you should obtain MSB license in Canada.
What means MSB?
MSB is an abbreviation for money service business, which is doing any activities related to: money transfers, virtual money transfers, Forex exchange dealing, issuing or redeeming money orders, traveller's cheques or anything similar. This means, that if you want to do any of these activities in Canada, you should obtain MSB license first.
MSB license should be obtained by companies, which are registered in Canada. But you can also obtain FMSB license for the company registered outside Canada and provide the same money services in this country. There is no difference in business activities, but this solution will allow you to enter the Canadian market with existing business. The only condition you need to fulfill - hire a local representative. This option is suitable if you don’t want to open a company in Canada.
Canada is one of the countries, where fintech market was thriving during the last 3 years and it seems that this situation won’t change in the nearest future. The Canadian Government has made fintech sector a focus with a $755 million commitment and expects that this step will generate a $2 billion economic activity. This is one of the reasons why you should obtain MSB license in Canada.
Besides that, the blockchain technology is developed widely in Canada. According to the Canadian Blockchain Census 2019, spending on blockchain in the country is expected to increase from $72 million in 2019 to $644 million by 2023. This fact makes the Great White North attractive also for crypto businesses.
And the new legislation in Canada, which came into force in early June 2020, has opened the green light for crypto-exchanges, as well as for payment operators dealing with crypto-currencies.
All the mentioned facts make Canada as one of the best destinations for fintech businesses.
Benefits of MSB license in Canada
Among the requirements for obtaining an MSB license in Canada there are no special amount for Authorized capital. This is a huge benefit compared to EMI license in the UK, where the capital of your company must be 350 000 euros. To start a money service business in Canada you will have to register a company, hire at least one local director and one local AML-officer.
Canada’s financial industry has a reputation of a stable and safe system. This happened because it was dominated by big banks, which have highlighted the historical stability. But nowadays financial sector needs to be developed more in the direction of open banking, which can open new opportunities for already existing businesses and for the new ones.
The process of obtaining the MSB license in Canada may take from 2 to 5 months. This is quite fast compared to another financial licenses you can get in Europe. For example, the service time for obtaining an EMI-license in some European country is usually from 6 month till 1 year. The time you will spend on bureaucracy, you can use for developing your business instead. This is another compelling reason why you should obtain MSB license in Canada.
As you may see, there are several strong arguments for starting an MSB in Canada. This country has attractive international reputation among financial institutions, therefore a new businesses will be more likely to be accepted as reliable companies, which is essential in financial industry. If it sounds reasonable for you then you can easily obtain an MSB license in Canada with the help of professional team of Universepay. Contact us and we will lead your company through the process over rough and smooth.