Transak, a Miami based Web3 payments provider has made two important regulatory steps towards the targets in the North American market.
Specifically in Canada, Transak has been registered with the Canadian Financial Transactions and Reports Analysis Centre (FINTRAC) as a Money Services Business (MSB). On the other hand, the company also acquired a Money Transmitter License in Delaware, USA.
These steps as provided by the team at Transak improve its regulatory fit in its quest to offer services across the growing crypto market in North America. Now, as a Canadian government organization, Transak Canada is subject to FINTRAC which emphasizes that they need to have serious AML & ATF measures in place. They note this is important, especially as crypto adoption is on the increase in Canada, where 13% of Canadians owned Bitcoin as of 2021.
As for Transak registration with FINTRAC, it also means that the company is obliged to apply compliance including KYC and tracking of transactions for any abusive activity. Transak, as they state, is focused on this compliance setup so that secure and regulated environment is provided to Canadian users for digital asset transfers.
Transak Strengthens its Position as a Regulated MSB Under FinCEN
MTL license of Delaware increases Transak network of states approvals and strengthens its status as a FinCEN MSB. Now, businesses and individuals in Delaware can use Transaks’s safe platform to purchase cryptocurrencies and cash out with ease.
So, with this new license, Transak is again ensuring that it observes and abides by the laws of Delaware to the letter thereby helping deliver a pleasant as well as dependable experience to its users.
Transak is also looking to conduct more licensing in other states aiming to comply with the local requirements. Now with two MTLs in hand already it would be a matter of time one seen the company expand within US to further aid the Web3 adoption. Transak enhances the decentralized economy by linking with exchanges, decentralized applications and wallets.
Canada Moves Crypto Exchange Compliance Deadline
The deadline for officials at Canada’s securities that were set out to take more aggressive measures and impose sanctions on cryptocurrency trading platforms that fail to meet the necessary conditions has now been moved to the end of 2024.
This decision comes as concerns grow over the risks tied to fiat-pegged stablecoins, with the Canadian Securities Administrators (CSA) stressing the importance of protecting investors. Originally set for October, the new deadline gives exchanges more time to meet these regulatory standards or propose safer options.
Stablecoins—valued for their 1:1 peg to traditional currencies—have sparked regulatory scrutiny, especially after past collapses, like TerraUSD, that left investors at risk. If platforms don’t meet compliance by year-end, they may face penalties, including limits on offering certain products to Canadian users.
How Major Crypto Exchanges Left the Canadian Market
Prominent cryptocurrency exchanges such as Binance, KuCoin, and Poloniex had to exit Canada in recent years. Binance left in May 2023, citing new policies that imposed restrictions on trading volumes and cuts-off access for USDT.
Also, KuCoin and Poloniex got banned in the year 2022 when Ontario Securities Commission (OSC) enforced measures claiming that the two did not comply with Canadian securities regulations. Nevertheless, exchanges such as Kraken, Coinbase, and Bitget continue to operate in Canada, having adjusted to the new regulations.
Transak’s recent achievement of regulatory consent is a notable advancement for the Australia-based company as it seeks to expand into North America, demonstrating that the organization is committed to providing safe and compliant Web 3 payment solutions.
By acquiring the status of a Money Services Business in Canada and obtaining a Money Transmitter License in Delaware, Transak strengthens its position on providing safe and regulated crypto transactions. This development is in line with Canada’s delayed timeline on registration for crypto platforms as regulators try to balance innovation and protection for investors.
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