MSB registration — virtual currency dealing in Canada

About This Company

Failure to notify FINTRAC within 30 days of an ownership change can result in administrative monetary penalties, criminal charges or registration revocation. Under the PCMLTFA and FINTRAC Registration Regulations, an MSB must report any change in ownership, control, directors, officers or contact persons. Acquiring 20% or more ownership or control triggers the submission of a valid criminal record check issued within 6 months. Section 11.11 disqualifies individuals convicted of money laundering, terrorist financing, fraud, organised crime or drug trafficking. A share deal preserves the registration number. Asset purchases do not transfer the registration and require a completely new application. Where the business involves retail payment activities, section 24 of the Retail Payment Activities Act requires re-registration approval before acquiring one-third or more voting control. National security reviews conducted by the Minister of Finance under that payment statute run from 60 to 180+ days. The buyer should verify on the public MSB Registry in Ottawa that the company holds active Registered status before signing. Official registration lasts for two years before requiring biennial renewal. Canadian law prohibits marketing this registration as an endorsement or licence.