EZO OTC: Canadian FX MSBs Buy and Sell Crypto and Stablecoins with EZO

As worldwide demand keeps growing for cryptocurrencies like BTC and ETH as well as stablecoins like USDC and USDT, chances are your foreign exchange money services business (MSB) has received such inquiries.

If as a FX MSB operator you’re interested in adopting cryptocurrencies like BTC, USDC, ETH or USDT as part of your currency options, this article is for you. If your MSB also provides cross-border payment services, we’ve explained how similar companies work with us to enable international transfers in stablecoins like USDC for your clients.

EZO’s crypto OTC desk is built to accommodate large purchases, sales and swaps of cryptocurrency like BTC, ETH and USDC in complete adherence with Canadian regulations. As a money services business registered with FINTRAC and Revenu Quebec, and as a payment service provider (PSP) supervised by the Bank of Canada, EZO’s experts are well-equipped to guide fellow MSB operators discovering cryptocurrencies and stablecoins.

Unsure about directly adopting crypto as part of your internal rails but interested in joining EZO’s referral partner program? We have another article exploring the details of our cross-border MSB referral program.

In Sum

• EZO provides Canadian FX MSBs with institutional OTC liquidity for buying, selling and swapping cryptocurrencies such as BTC, ETH and stablecoins like USDC.
• MSBs can expand their currency offerings by enabling crypto transactions or stablecoin settlement while maintaining their own client relationships and compliance responsibilities.
• EZO operates within the Canadian regulatory framework, registered with FINTRAC and Revenu Québec and supervised by the Bank of Canada under the Retail Payment Activities Act.
• MSBs can participate directly or through referrals, allowing them to capture growing demand for crypto and stablecoin services without necessarily integrating digital assets into their internal operations.

Why Choose EZO’s Crypto OTC Desk: Access 24/7 Stablecoin Liquidity as a Currency Exchange Service Provider

EZO’s crypto OTC desk can assist you in acquiring large volumes of cryptocurrencies like BTC and ETH as well as stablecoins like USDC, enabling your FX MSB to offer cryptocurrency exchange in addition to the traditional fiat currencies you already carry.

Choosing EZO is choosing a long-term partnership rewarding loyalty with a degressive lifetime fee grid. The more we trade, the less you’ll pay for your future transactions. Our referral partner program offers additional growth opportunities, with great potential for recurring rewards, even if you refer just one client or friend.

Exchange Quick* is a Canadian money services business specializing in fiat currency exchange. In addition to cash, they also facilitate online currency exchanges for international transfers. They buy bitcoin, ethereum and USD Coin using their EZO OTC account on a regular basis to their company self-custodial crypto wallet, from which they are subsequently able to send and receive for currency exchanges involving cryptocurrencies.

*This is a fictional example which reflects the reality of many of our MSB and PSP clients.

Like Exchange Quick*, start working with EZO’s crypto OTC desk to benefit from:

• Human Support and Service – Simply speak to one of our experts to initiate your transactions. Real, available and responsive, they are here to help.
• Rewarding Fees – The more volume you move with EZO, the less you pay in the future.
• Fully Compliant and Secure – EZO is FINTRAC and Revenu Quebec-registered and supervised by the Bank of Canada for the purposes of the Retail Payment Activities Act
• Your Keys, Your Crypto – We send your crypto directly into your self-custodial or exchange wallet. When buying with EZO, your funds remain under your control.
• Rapid Settlement – Once a transaction has been confirmed, receive your crypto in your specified cryptocurrency wallet.
• Crypto Exposure – Add crypto including BTC, ETH and USDC to your currency options and gain crypto exposure with EZO’s crypto OTC desk.
• Referral Opportunities – Refer clients,business partners and more and earn up to 15% of the fee charged by EZO for each transaction your referrals make.

Operational Model: EZO x Your MSB

What EZO’s Crypto OTC Desk Handles

EZO’s crypto OTC desk experts will be your single point of contact for your conversion needs, whether you wish to convert from crypto to fiat like USD or CAD, or fiat to crypto including BTC, ETH and USDC. As your institutional liquidity partner, we on-ramp and off-ramp funds to your crypto wallet or your bank account directly once the funds are received and the transaction IS confirmed.

We execute your purchases, swaps and sales according to your instructions and apply transparent pricing under a pre-agreed fee structure. We source liquidity across established venues and maintain relationships with licensed liquidity providers and banking partners. We perform ongoing due diligence on our partners, reducing your exposure to the operational and compliance risks associated with fragmented crypto markets.

Rather than your MSB opening and managing accounts across multiple venues, negotiating and assessing risk, EZO centralizes these duties. We manage crypto market access for you. Additionally, EZO does not maintain custody of your assets. This structure ensures clear regulatory boundaries and avoids ongoing asset safekeeping exposure.

Although our EZO crypto OTC desk experts are not consultants, our team is willing to discuss MSB registration with you and share insights on our own experience. We work with our customers with the goal to build long-term relationships together. Reach out at anytime at info@ezo.app for any inquiries or book a meeting.

What Your MSB Handles

With EZO among your partners, your MSB remains nonetheless responsible for your own client relationships and your regulatory responsibilities in relation to FINTRAC and the Bank of Canada if you are also a PSP. You are responsible to file Large Virtual Currency Transaction Reports (LVCTR), Large Cash Transaction Reports (LCTR) and Electronic Funds Transfer Reports (EFTR) and to adhere to Travel Rule obligations whenever applicable.

Source of funds, KYC or KYB information must be collected according to your own internal AML/CTF policies, which also have to be updated in light of your virtual currency activities.

Operations-wise, your MSB collects funds in fiat from your customers and sends them to EZO. Alternatively, you may wish to build an internal BTC, ETH or USDC treasury reserve in a self-custodial wallet, from which you can then send your funds to your customers as they come. EZO can provide that large value liquidity.

Don’t Want to Handle Crypto? Become an EZO Referral Partner

If you have been witnessing increasing demand but are not ready to integrate virtual assets among your currency offerings, you can still benefit from the growing crypto market by joining our crypto referral partner program.

When one of your clients inquires about crypto and stablecoin like BTC, ETH or USDC acquisition or sale, refer them to our crypto OTC desk. As our referral partner, you earn 15% of our revenue associated with the referred client’s transactions as long as the referral agreement stays in place.

You can learn more about this arrangement in our article introducing our FX and Cross-Border MSB Referral Partner Program. Contact us at info@ezo.app for more information and to create your crypto OTC account.

What Is Required of MSBs to Purchase Crypto from EZO and Offer It to Retail Customers in Canada?

FINTRAC Money Services Business Overview

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) requires companies performing money services business activities to register with them and fulfill anti-money laundering and counter-terrorist financing reporting duties. If you are reading this article, chances are you are already a MSB or plan to register and start operating as one. 

In case you haven’t yet, to apply as a money services business, you must fill a pre-registration form, which includes selecting applicable sectors of activities. Becoming registered as a MSB involves incorporating your business, implementing a robust Anti-Money Laundering (AML) & Know-Your-Customer (KYC) compliance program as well as submitting comprehensive disclosures regarding your operations, management structure and beneficial ownership.

Dealing with virtual currency is included within regulated money services business activities. Unless registered under securities regulation frameworks (such as restricted dealer status), MSBs typically structure cryptocurrency transactions on a non-custodial basis, where assets are delivered directly to the client’s wallet rather than being held by the MSB.

An in-depth review of the regulatory scene for crypto in Canada, including differences between restricted dealers and MSBs is available on our blog.

MSB Authorized Services

If you are already registered as a MSB, adding cryptocurrency as part of your services offered can be done by submitting a Change Form to FINTRAC. FINTRAC will then follow up with your company with the next steps. As different money services activities come with distinct compliance expectations, you will be expected to update your policies, procedures and risk assessment to reflect the addition of virtual currency as part of your workflow.

Payment Service Provider

If you perform cross-border transactions in addition to your currency exchange services and you are exploring stablecoin settlement or crypto-enabled transfers, you may already be registered or in the process of registering under the oversight of the Bank of Canada as a Payment Service Provider (PSP) according to the Retail Payment Activities Act (RPAA). This framework applies to businesses that perform retail payment functions in Canada.

Integrating crypto into your currency offerings does not remove existing payment obligations. PSP registration focuses on operational risk management, incident reporting and protection of end-user funds. These obligations operate alongside AML and KYC FINTRAC MSB requirements.

Revenu Quebec

Quebec is currently the only province that requires a separate provincial Money Services Business license in addition to FINTRAC registration. Unlike FINTRAC-regulated MSB activities and aside from ATM operations cryptocurrency is not explicitly listed. Nonetheless, other related activities like money remittance, funds transmission or currency exchange may trigger licensing requirements.

If operating in Quebec or serving Quebec residents, you must apply with Revenu Quebec to receive a Money-Services  Business License.

Why Integrate Crypto into Companies in Canada?

Businesses all around Canada and beyond, from all industries, are starting to adopt cryptocurrency like BTC and ETH and stablecoins like USDC and USDT for many reasons:

• Wholesale Inventory Acquisition and Supplier Payments – Large invoices are settled efficiently with stablecoins, regardless of supplier’s geographical location.
• Building a Crypto Treasury – Diversify corporate reserves and hedge against currency debasement or inflation exposure.
• Cross-Border Payments – Reduce settlement times and lower intermediary banking fees and correspondent charges compared to traditional banking rails.
• Offering Additional Payment Options to Clients – Attract new customer segments and enhance payment flexibility.
• Faster Settlement and Improved Cash Flow Management – Benefit from near real-time transaction finality.
• Reduced FX Friction – Use digital assets as a bridge for multi-currency transactions.
• Strategic Positioning and Innovation Signaling – Demonstrate forward-looking financial infrastructure to partners and clients.

Who Can Benefit from a Business Account with EZO?

Canadian companies across industries and at every stage already rely on EZO’s crypto OTC desk to access institutional-grade crypto and stablecoin liquidity with zero spread.

• Foreign Exchange MSBs – Foreign Exchange MSBs can expand their currency offering by partnering with EZO, enabling either direct settlement through their own infrastructure or indirect settlement via referral to EZO’s OTC desk.
• Cross-Border Money Transfer MSBs – EZO provides crypto and stablecoin liquidity including BTC, ETH and USDC as well as referral partnership opportunities for cross-border transfer MSBs seeking to give their clients the option to choose seamless international stablecoin transfers.
• Import & Export Companies – Import & Export companies streamline their processes and cut on FX costs when sending and receiving payments in stablecoins acquired and sold via EZO.
• Traditional Companies – EZO enables companies of all types to access crypto and stablecoin liquidity.
• Many More – Organizations across sectors rely on EZO’s OTC desk for scalable liquidity and seamless execution.

Contact our crypto OTC desk team to evaluate how stablecoins like USDC and cryptocurrencies such as BTC and ETH can strengthen your FX MSB’s position as digital assets become increasingly integrated into global financial infrastructure.

We can help your MSB:

• Buy USDC with CAD or USD*;
• Sell USDC for CAD or USD*;
• Buy BTC with CAD or USD*;
• Sell BTC for CAD or USD*;
• Buy ETH with CAD or USD*;
• Sell ETH for CAD or USD*
• Swap between USDC, BTC and ETH;
• Contact our crypto OTC desk team for more.

*For USD crypto purchases and sales, a U.S.-Domiciled bank account denominated in USD is required.

Not ready to integrate crypto directly but still want to expand your offering? Read more about EZO’s referral partner program and join us. Read more and start referring and earn continuously.

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Frequently Asked Questions

How do FX MSBs typically use stablecoins like USDC?

Many MSBs use stablecoins to settle cross-border payments faster, reduce correspondent banking fees, facilitate international remittances, provide crypto exchange services to clients and to manage USD-denominated liquidity.

How does trading with EZO’s OTC desk work for MSBs?

Typically the process works as follows: your MSB collects fiat funds from your customer and sends CAD or USD to EZO. EZO executes the crypto purchase or sale through its OTC desk. The digital assets are delivered directly to your wallet or fiat is returned to your bank account, which you can then send to your client.

Can MSBs work with EZO without directly offering crypto to their clients?

Yes. MSBs can join EZO’s referral partner program and refer clients interested in buying or selling cryptocurrencies like BTC or ETH and stablecoins like USDC. Referral partners can earn up to 15% of the fees generated by the referred client’s transactions.