While people have been using cryptocurrencies for a decade now, many countries have adopted proper crypto regulations just recently.
Canada is no exception, as its cryptocurrency regulations were released in 2018. Previously, businesses were able to use crypto tokens freely in their operation. However, now, one should get a license to operate under the law.
In this article, you will learn more about the current Canada crypto regulation and how to receive proper licensing conveniently.
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How Do You Receive a Crypto License in Canada?
There is a set of laws that regulate crypto usage in Canada these days. All local and foreign websites using crypto as a form of currency need to receive the status of an entity offering financial services. Businesses can do this by obtaining an MSB (Money Services Business) license. You can get it conveniently with the help of professional consulting services. They will guide you through the process until you receive the licensing your business needs.
All about Cryptocurrency Licensing
Due to the growing popularity of digital currencies, there are numerous types of crypto licenses. Cryptocurrency licenses allow one to perform a range of activities legally. Here are some of them:
- Exchanging digital currencies and fiat money;
- Storing crypto tokens for the customers;
- Making money transfers in crypto;
- Promoting cryptocurrency services;
- Managing digital currency accounts, etc.
In Canada, it is obligatory to own a crypto license to perform the activities mentioned above legally. In addition, if you own a digital currency license, your clients will feel secure.
The Advantages of Having a Cryptocurrency License
Having a proper crypto license is advantageous for all companies. Here are some of the key benefits of having licenses for crypto-related businesses in Canada:
- Legality. First, a proper cryptocurrency license ensures the full legality of your business. Since the crypto market is now regulated, not complying with the regulations will lead to penalties and serious consequences;
- Reliability. Only certified businesses that comply with the law can seem reliable for clients. Potential customers would rather stay with a legal business than with an uncertified one. The license also adds to the security of services and transactions, which are the things clients value a lot.
- Collaboration with banks. Traditional banking institutions are still wary of collaborating with cryptocurrency services. However, with an MSB license, companies have more chances of collaborating with banks;
- Global operations. Cryptocurrencies are used worldwide, and many businesses dealing with crypto receive unique opportunities to expand abroad. Crypto licensing also simplifies foreign trade and helps in receiving respective licenses in other countries;
- Search for investors. Legal licensing is attractive both for clients and for business partners. Companies that own MSB licenses attract crypto investors easily and get new business opportunities.
Conclusion
Having a cryptocurrency license is a necessity in the modern world. It makes a crypto business legal and helps attract new clients and investors. The crypto sphere is evolving continuously, and new solutions appear every day. So, businesses have to comply with the new regulations to develop successfully and not become obsolete.
