Virtual Currency Dealing License Canada | FINTRAC MSB Permission
The virtual currency dealing permission is one of the six FINTRAC MSB permission types — and the most relevant for crypto businesses. It authorizes a Canadian MSB to buy, sell, transfer, or exchange virtual currency for fiat or other crypto. Always 10+ FINTRAC-registered MSBs in stock with this permission active — ownership transfer in 5–8 hours.
What This Permission Lets You Do
- Operate a centralized crypto exchange (subject to additional CSA rules for securities crypto)
- Run an OTC desk trading virtual currency for fiat or other crypto
- Provide custodial wallet services holding/transferring user crypto
- Operate a Bitcoin/crypto ATM
- Run a crypto remittance service
- Issue stablecoins (with additional CSA considerations)
- Operate fiat on/off-ramp facilitation
What This Permission Does NOT Cover
- Custody/trading of crypto assets that are securities (CSA + provincial securities regulator territory)
- Pure NFT marketplaces with no virtual currency exchange (regulatory gray area)
- Holding customer fiat in payment accounts (this triggers RPAA registration)
- Acting as a derivative dealer in crypto futures/options (CSA + provincial regulator)
Compliance Requirements
Canadian MSBs with virtual currency permission must maintain:
- Customer ID & verification — KYC for all virtual currency dealings
- LVCTR reporting — Large Virtual Currency Transaction Reports for transactions ≥$10,000 CAD
- Travel rule compliance — originator/beneficiary information for VC transfers ≥$1,000 CAD
- Suspicious transaction reporting (STR) — within 30 days of detecting suspicion
- AML compliance program — full written program with risk assessment, policies, training
- Record keeping — 5-year retention for transaction records and customer ID
Frequently Asked Questions
Do all crypto businesses need this permission?
Yes, for businesses operating in Canada that buy, sell, transfer, or exchange virtual currency for fiat or other crypto. Pure crypto-to-crypto B2B operators may have a narrower scope, but in practice most need the permission. Pure non-custodial software (like wallet apps that don’t hold keys) generally don’t.
Is this the same as a CSA Crypto Asset Trading Platform license?
No. FINTRAC virtual currency permission covers AML compliance. CSA registration covers securities-law compliance for platforms trading crypto assets that are securities or derivatives. Centralized exchanges typically need both.
What’s LVCTR?
Large Virtual Currency Transaction Reports — FINTRAC’s reporting requirement for individual VC transactions valued at $10,000 CAD or more. Must be filed within 5 business days of receipt or transfer.
What’s the travel rule for virtual currency?
The Canadian travel rule requires obtaining and transmitting originator/beneficiary information for virtual currency transfers of $1,000 CAD or more. Both the sending and receiving Canadian MSB must collect and transmit this data, mirroring traditional wire travel rules.
Can I buy an MSB with this permission already?
Yes. All our ready-made MSBs include all 6 permissions, including virtual currency dealing. Several are also RPAA-registered (necessary for fiat on/off-ramps with custody). View MSB+RPAA inventory.
Do I need RPAA in addition to virtual currency permission?
Most likely yes if you hold customer fiat. RPAA covers operational risk and end-user fund safeguarding. Pure crypto-to-crypto operators with no fiat custody may avoid RPAA, but the line is fuzzy. Read the RPAA guide.
