MSB License in Canada in 2025: Full Guide for Fintech, Crypto & Payment Companies
Looking to launch a fintech or crypto business in Canada? You’ll likely need a Money Services Business (MSB) license to stay legal and trusted. In 2025, FINTRAC has tightened rules for MSBs, especially those operating in the virtual currency and payment space.
This guide explains:
- What an MSB license in Canada is
- Who needs it in 2025
- Key regulatory updates
- How to register and stay compliant
- Why MSB is the first step to your crypto license in Canada
What Is an MSB License in Canada?
A Money Services Business (MSB) is any company that offers:
- Currency exchange
- Domestic and international money transfers
- Payment processing
- Issuance of money orders or prepaid cards
- Dealing in virtual currencies (crypto exchange or wallets)
- Cheque cashing or factoring services
In Canada, MSBs must register with FINTRAC and comply with the PCMLTFA (Proceeds of Crime – Money Laundering and Terrorist Financing Act).
If your company handles money, crypto, or payments — you probably need MSB registration.
Who Needs to Register as an MSB in 2025?
You are required to register if your business:
| Service | MSB Registration Required? |
| Crypto exchange (BTC, ETH, stablecoins) | Yes |
| Remittance platform | Yes |
| White-label payment gateway | Yes |
| Multi-currency wallets | Yes |
| Forex brokerage | Yes |
| ICO launchpad (with fiat/crypto) | Yes |
| NFT marketplace (with payments) | Maybe |
| Software-only SaaS billing | No |
2025 Regulatory Updates for MSBs
1. Cheque-Cashing Services Must Register (April 1, 2025)
Companies offering cheque cashing, invoice factoring, or similar services must now register as MSBs and comply with AML requirements.
2. Criminal Background Screening Required (October 2025)
FINTRAC mandates background checks for owners and controllers of all MSBs to prevent misuse by shell companies.
3. Real-Time AML Scorecard Coming
FINTRAC is launching a compliance scorecard system to monitor how well MSBs follow AML rules. Real-time feedback will help reduce the risk of audits and penalties.
Sources: Reuters, Stikeman LLP, BizDaddy
Crypto Business? MSB Is Your First Step
There is no “crypto license” in Canada. If you’re running a crypto exchange, wallet, or OTC desk — you must register as a Crypto MSB.
MSB crypto services include:
- Exchanging crypto to fiat or crypto-to-crypto
- Crypto transfers between clients
- Holding client crypto wallets (custodial service)
How to Register an MSB in Canada
- Incorporate your company in Canada (federal or provincial)
- Build your AML program (written compliance manual, KYC policy, risk matrix)
- Appoint a Compliance Officer
- Register online with FINTRAC
- Open an MSB-compatible bank account
- Submit monthly or suspicious transaction reports (STRs)
Penalties for Non-Compliance
Not registering as an MSB or failing to follow AML rules can lead to:
- Fines up to $500,000
- Criminal prosecution
- Being blacklisted by banks
- Closure of your business
Why Work With Licensium?
Licensium helps you:
- Register your MSB with FINTRAC
- Prepare AML policies and compliance program
- Find MSB-friendly banks
- Structure your crypto or payment business correctly
- Expand to EMI or CASP licenses (EU, UK, Dubai)
We handle licensing — so you can focus on growth.
Frequently Asked Questions (FAQ)
Do I need an MSB license to run a crypto exchange in Canada?
Yes. Any company dealing with virtual currency must register as an MSB.
Can I get a bank account as an MSB?
Yes, but it’s difficult. We help clients open accounts with crypto- and MSB-friendly banks.
Is MSB the same as a crypto license?
In Canada — yes. There’s no standalone crypto license. MSB is required for legal operation.How long does MSB registration take?
Usually 3–6 weeks, depending on how complete your compliance documentation is.