If you're planning to start a crypto exchange in Canada, understanding the regulatory landscape is crucial. I don’t wish to complicate it here. All the Canadian crypto exchanges are integrated with secure cold storage properties. With that security, regulation is quintessential.
There are two main bodies involved, FINTRAC and CSA.
The FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) acts as a financial intelligence unit. All crypto exchanges in Canada must register with FINTRAC to comply with AML (Anti-Money Laundering) and KYC (Know Your Customer) requirements. The job of FINTRAC is to ensure transactions are legitimate and help prevent money laundering and terrorist financing.
CSA (Canadian Securities Administrators) works to unify and strengthen securities regulations across its provinces. If your exchange deals with crypto assets considered securities, then CSA oversight becomes essential.
FINTRAC and CSA often overlap in many conditions. So, if you're regulated by the CSA, you'll likely need to meet FINTRAC standards too.
Above all, provinces like Ontario have their own rules. The Ontario Securities Commission (OSC) requires registration for exchanges operating within the province. You need to be aware of this scenario, too. Canada is among the top 10 countries for crypto adoption, and that makes it a promising country.
You’ll need to tick all the legal boxes first when starting your own Canadian crypto exchange without stress. Then, you don’t need to worry about regulatory issues and begin your business journey doubt-free.