Balance Introduces Turnkey Solution to Streamline Compliance for Canadian MSBs Dealing in Virtual Currency

Balance, Canada's largest digital asset custodian, has unveiled Balance Compliance, a turnkey solution that streamlines regulatory compliance for FINTRAC reporting entities dealing in virtual currency such as money services businesses (MSBs). 

Balance Compliance enables Balance Custody clients which are FINTRAC reporting entities 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 Balance's integration with leading blockchain data platform Chainalysis, and so on, to ease their compliance pressure.

"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," said 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," said George Bordianu, Chief Executive Officer.