Balance introduces Balance Compliance for Canadian MSBs dealing in virtual currency.
TORONTO - August 9, 2022 - Balance, Canada’s largest digital asset custodian, today unveiled Balance Compliance, a turnkey solution which streamlines regulatory compliance for FINTRAC reporting entities dealing in virtual currency such as money services businesses (MSBs).
Balance Compliance is the result of over 18 months of work and enables Balance Custody clients which are FINTRAC reporting entities to perform the following on the platform:
- designate default originators (i.e., conductors) and beneficiaries on digital wallets as well as external accounts to streamline compliance workflows;
- submit instructing third party information on large deposits and automatically submit Large Virtual Currency Transaction Reports (LVCTRs);
- comply with sanctions policies through our integration with Chainalysis, a leading blockchain data platform;
- comply with Travel Rule requirements through our integration with Travel Rule Universal Solution Technology (TRUST), a leading industry solution;
- export Large Virtual Currency Transaction (LVCT) records and records of virtual currency transfers equivalent to $1,000 or more in a standardized format.
"The regulatory burden for Canadian companies entering the space in 2022 is non-trivial. Depending on the business model, you might be looking at $100k+ in costs for just developing the LVCTR reporting system alone. For early stage startups these costs tend to be prohibitive, creating a barrier to entry and slowing down innovation. We’re happy to provide a solution where submitting LVCTRs is as easy as delegating Balance as your service provider in FINTRAC Web Reporting." - Nuno Silva, Chief Product Officer
"Given FINTRAC’s recent retraction of its position with respect to merchant servicing and payment processing, certain virtual currency payment providers and crowdfunding platforms now need to register as MSBs. For a large majority of them, this new compliance overhead translates into negative unit economics. That doesn’t have to be the case. At scale, these costs blend in for us. Come leverage our platform for compliance peace of mind and focus on the core and spirit of your business instead." - George Bordianu, Chief Executive Officer
Balance successfully serves crypto exchanges, OTC and prop. trading desks, neobanks, ATM networks, private funds, market makers, liquidity providers, and corporate entities and foundations. To find out more, visit www.balance.ca.
Press release issued on July 20, 2022
Further to the press release issued on July 20, 2022, Balance wishes to clarify that Balance itself is not a “qualified custodian” as such term is defined pursuant to applicable securities laws and that crypto trading platforms that are licensed with securities authorities in Canada are expected to use qualified custodians, absent any discretionary relief that may be granted by these regulatory authorities.
PARADISO VENTURES INC. O/A Balance is a private company incorporated under the Canada Business Corporations Act, R.S.C., 1985, c. C-44 with its registered office address at 888 3rd St SW, Bankers Hall West Tower, 10th floor (Attn: Balance), Calgary, Alberta, T2P 5C5, Canada which sells digital goods and services. Balance is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a money services business dealing in virtual currencies with registration number M20210422 and with the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) as a money services business with registration number 31000258737080. This is not an offer or solicitation of any investment contract or financial security and should not be misconstrued as such. Digital assets and the blockchain are early technologies and as such have an associated high degree of risk. Balance does not provide financial, investment, tax, legal, or any other type of professional advice. For informational purposes only.