Toronto digital asset custodian Balance has 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 is Canada’s largest digital asset custodian with almost $1 billion worth of assets under custody.
Balance serves crypto exchanges, OTC and prop. trading desks, neobanks, ATM networks, private funds, market makers, liquidity providers, and corporate entities and foundations.
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,” shared Nuno Silva, Balance’s Chief Product Officer.
“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.”