With Centralex’s vision to become a global player in the crypto space, obtaining appropriate authorization and licensing from governmental bodies is a smart strategic move. One of the most important of these certifications is a money service business license, or MSB. An MSB license gives Centralex the green light to offer a much wider variety of financial products to their customers in that particular jurisdiction.
What is an MSB?
An MSB is an organization that has the authority to transfer money, convert funds and provide a host of banking services for a variety of clients and retail businesses. MSBs are not limited to banking institutions; rather they can be any type of business that has fulfilled the requirements set by the governing body of the country.
Centralex as an MSB and why it’s important
Laws and the regulatory ambit relating to MSBs vary by country, so it is imperative that licenses are obtained in each country. To date, Centralex has secured Crypto licenses in Estonia, Australia and obtained a USA MSB, with a second (Canada MSB) set to be approved this month. (See publication date)
Becoming a fully-licensed MSB means Centralex are legally authorized to transfer funds, exchange between currencies, provide global remittance and payment services, and make intermediary payments between suppliers. The license also allows Centralex to issue microloans, crowdfund, build an online market and provide investment services. The MSB certification opens up some massive doors for Centralex, and the innovative, adoption-focused team are sure to take advantage of the opportunity.
Diehard crypto enthusiasts may cringe at the thought of government regulation of the crypto space, but with digital assets growing rapidly in popularity, and the total crypto market cap closing in on $2 trillion, one must be realistic. Greater government regulation of crypto assets is undoubtedly looming on the horizon, and attaining MSB accreditation now will leave Centralex in a much stronger position compared to their unregulated counterparts when it finally does happen.
Being an active MSB means Centralex will need to adhere to all existing regulations and comply with any new ones that may be introduced by relevant agencies in each jurisdiction. Centralex will also be expected to report any suspicious transactions to relevant authorities. To this end, the team will employ the services of Chainalysis, a comprehensive AML solution that can detect nefarious activities being undertaken at any time on the Centralex Exchange platform. Centralex will be doing its part to fight money laundering, scammers, corruption and fraud.
What does Centralex’s MSB status mean for users?
First and foremost, MSB licensing gives Centralex the legal authority to provide a much wider array of financial services to its users. Official MSB accreditation means Centralex users can enjoy peace of mind, safe in the knowledge that they are trading on a legitimate, trustworthy exchange that adheres to the financial laws of the country.
To comply with MSB regulations, KYC/AML procedures will be mandatory for all customers. Screening checks will be performed on all new sign-ups, especially those in high-risk countries.
Transfers of funds will also require information beyond the wallet address of the receiver. Users will need to provide some particulars about the receiver and the purpose of the transfer. This requirement may make some people feel a bit uneasy; however, the information required is no more than that required on legacy SWIFT transfer forms. For Centralex, supplying these details will go a long way towards keeping Centralex on the right side of the authorities.
Attaining these Crypto and MSB licenses in such a short span of time is a significant achievement for the Centralex team as they pursue their goal of becoming a one- stop shop for all things crypto.