Cryptoasset Services
Money-services businesses (MSBs) offering services related to the purchase, sale or exchange of cryptoassets may need a licence under the Money-Services Businesses Act (MSBA). These activities may also be subject to other federal or provincial legislation.
A licence may be required for the following activities.
Operating a cryptoasset ATM
A licence is required to operate cryptoasset ATMs.
Cryptoasset ATMs allow users to buy or sell cryptoassets without the intervention of a natural person. Users can deposit cash to buy cryptoassets or receive cash by selling cryptoassets.
Some cryptoasset ATMs also allow users to withdraw legal tender, like conventional ATMs. MSBs operating these machines need a licence for the operation of cryptoasset ATMS and the operation of a conventional ATM. With the licence, they will receive a decal for each type of service.
Funds transfers
For purposes of the MSBA, we interpret “funds transfer” broadly. As a result, MSBs that operate an online platform where users can purchase, sell or exchange cryptoassets and transfer legal tender (Canadian dollars, US dollars, etc.) must have a funds transfer licence.
Currency exchange
Under the MSBA, MSBs need a licence to offer currency exchange services. However, since cryptoassets are not legal tender in Canada, a service allowing users to purchase, sell or exchange them is not considered such a service.
However, MSBs that operate a platform allowing users to deposit legal tender (for example, Canadian dollars) into an account, to buy cryptoassets and to resell them in exchange for payment in a different currency (for example, US dollars) are considered to offer currency exchange and funds transfer services. They therefore need a licence for both activities.
For more information about cryptoassets and the related obligations, see Legislative guidance and Cryptoasset trading platforms on the Autorité des marchés financiers website.
There is a great deal of risk involved in cryptoassets, for investors as well as MSBs. To learn more, see Cryptoassets: what you need to know on the Autorité des marchés financiers website.
For more information about the tax consequences of cryptoassets transactions, see Cryptoassets.