Zitadelle AG is your trusted partner in obtaining a Canada Money Services Business (MSB) license—a gateway to legally operate a fintech, foreign exchange (FX), or crypto business within one of the most respected and innovation-driven jurisdictions in the world. As global demand for e-commerce and digital assets grows, Canada stands at the forefront with a robust yet business-friendly regulatory environment.

What is a Canada MSB License?

A Money Services Business (MSB) in Canada is defined under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The license is issued and supervised by FINTRAC – the Financial Transactions and Reports Analysis Centre of Canada.

Under Canadian law, your business will be considered an MSB if it is involved in any of the following:

• Foreign exchange (FX) dealing

• Remitting or transmitting funds (by any means including electronic networks)

• Issuing or redeeming money orders, traveller’s cheques, or similar negotiable instruments

• Dealing in virtual currencies, including crypto asset services

Why Choose Canada for Your Fintech or Crypto Business?

• Top-tier jurisdiction with international credibility

• Favorable compliance structure for fintech, payments, and crypto

• No corporate tax on MSBs at the federal level

• Access to the North American market

• No capital requirement, although CAD 50,000 is recommended for business substance

MSB Licensing Requirements & Compliance

To register a Money Services Business (MSB) in Canada, the following steps and requirements must be met:

🔹 Basic Requirements

• At least 1 compliance officer with AML experience

• At least 1 director with financial/payments industry experience (both can be non-residents)

• Submission of a comprehensive business plan

• Completion of KYC/AML documentation and due diligence

🔹 Compliance Obligations

After registration with FINTRAC, MSBs must:

• Implement a robust AML/CTF compliance program

• Appoint a compliance officer

• Maintain written AML/CTF policies and procedures

• Perform a formal risk assessment

• Train staff, agents and service providers

• Perform a bi-annual compliance review

• Comply with KYC, recordkeeping, and reporting requirements

Crypto Services Under MSB License – What’s Allowed?

An MSB can provide crypto services such as:

• Buying crypto from customers and converting to fiat (same day - regulatory limitation due to absence of custody authorization)

• Trading in Bitcoin, Ethereum, Litecoin, Bitcoin Cash — which are not considered securities

• Advertising FX or crypto services online

However, custody services (i.e., holding tokens on behalf of clients overnight or through third-party custodians) are NOT allowed under MSB—you will need a separate Dealer License regulated by Canadian securities regulators.

Selling Securitized Tokens (e.g., USDT / Stablecoins)

Selling stablecoins or other securitized tokens triggers securities obligations. In that case, you must register as a securities dealer in addition to holding an MSB license. We can assist with legal reviews of each token to assess regulatory classification and risk exposure.

Required Documents

To apply for a Canadian MSB license, you will need to provide:

• Passport & utility bill of directors and shareholders

• CV & diplomas

• Criminal record check (not older than 3 months)

• Proof of address (certified & translated)

• Two reference letters

• Personal questionnaire forms

• Detailed business plan

• Compliance documentation (prepared by our legal team)

Licensing Timeline

Typical timeline: Approximately 6 months from submission of complete documentation.

Currency Conversion & Identification Flexibility

• Currency conversion and multi-currency wallets are permitted.

• No requirement for personal identification for every customer (depends on risk level).

• Non-face-to-face onboarding is allowed with appropriate compliance measures.

Why Work with Zitadelle AG?

At Zitadelle AG, we provide turnkey solutions for MSB licensing in Canada—from incorporation and regulatory filings to AML/CTF framework setup and post-licensing support. With our local legal partners and compliance experts, we ensure your MSB is fully compliant and ready to operate legally.

Get Started with Your Canada MSB License Today

Whether you're a payment provider, crypto platform, or FX exchange, Zitadelle AG helps you navigate the Canadian regulatory landscape with precision and confidence.

📩 Contact Zitadelle AG today to begin your Canada MSB application process, or to discuss additional licensing options such as Securities Dealer Licenses for crypto custodians.