Labuan Crypto License – How to Obtain a Regulated Cryptocurrency Exchange License in Malaysia
Key Takeaways for Obtaining a Labuan Crypto License in Malaysia
- The best crypto regulation for South East Asia
- Crypto is regulated by the Labuan Financial Services Authority (LFSA)
- License is classified as a Digital Asset Service Provider
- Access to excellent local banking options
- Capital requirements set at 1 million MR
Steps to Obtain a Labuan Crypto License
- Register a Labuan International Business Company (IBC) with the Labuan FSA.
- Prepare a detailed business plan covering crypto services, market scope, and AML/CFT compliance.
- Appoint directors with relevant experience in financial services or blockchain technology.
- Implement comprehensive KYC and AML procedures that align with Labuan FSA guidelines.
- Establish a physical presence or management office in Labuan (if required by license class).
- Submit the complete license application with supporting documents to Labuan FSA.
- Register a Labuan International Business Company (IBC) with the Labuan FSA
- Receive approval and begin operations as a regulated crypto exchange or service provider.
Key Information Related to Labuan Digital Financial Service Provider Licenses
- The required capital of 500,000 ringgit can be spent throughout the fiscal year
- A physical interview in Labuan, Malaysia is not required at this time
- ICOs and the issuance of stablecoins are permitted
- Leverage on all cryptocurrency products is fixed at 1:1
- Directors should demonstrate experience in financial services and be prepared to provide reference letters
- A local bank account is required in order to receive license approval
Why Consider a Labuan Cryptocurrency Exchange License?
Obtaining a Cryptocurrency Exchange License in Malaysia – How Does It Work?
- As a starting point, our consulting team will schedule a call to discuss your licensing needs in detail: ongoing costs, capital, taxes, timeframes and more
- If we determine that Labuan, Malaysia is the right fit for your cryptocurrency exchange, we’ll send over a formal proposal along with engagement terms
- Upon engagement with our team, we’ll provide a comprehensive list of all documentation required for license approval
- After gathering all the necessary documentation, we’ll formally submit your application to the Labuan LFSA
- During the review process of your application, our team will stay in constant touch with your compliance department, providing updates in real time
- Once the Labuan, LFSA has approved your application, the next step is to officially register a local company in Labuan territory
- After the registration process is finished, we’ll then apply for a local bank account and assist with the office selection process and staff
How to Get a Crypto License in Labuan? – Check Out Our YouTube Channel
Atomiq Consulting – Your Crypto License Consulting Partner
Established in 2014, Atomiq Consulting has established itself as an industry leader in financial services licensing. Given our many years of experience assisting forex & CFD brokers in Labuan, Malaysia, it was a simple transition for our team to also focus on cryptocurrency regulation. With intimate knowledge of the region, decades of regulatory experience and a solid background in financial services regulation, Atomiq Consulting is the ideal partner to assist your blockchain project / cryptocurrency exchange with a Digital Financial Service Provider license in Labuan, Malaysia.
To Learn More About Applying for a Digital Financial Service Provider License in Labuan – Contact Us Today!
If your exchange is interested in obtaining a cryptocurrency license in Labuan, our team can help. Don’t hesitate to reach out to us in order to discuss timelines, fees, and any other questions!
Labuan Crypto Regulation FAQ
Are there any crypto exchange licenses in Malaysia for sale?
In addition to license consultation, we can also assist you in acquiring a fully licensed forex brokerage. Check out our marketplace to see the current crypto exchanges for sale in Malaysia.
Are Labuan licensed cryptocurrency exchanges able to solicit Malaysian clients?
No, investors from Malaysia are not allowed to open an account with an LFSA licensed Digital Financial Service Provider.
What is the difference between a Money Broker and a Digital Financial Service Provider?
Licensed Money Brokers offer conventional assets such as stocks, futures, bonds and foreign exchange while Digital Financial Service Providers primarily focus on cryptocurrency. It’s worth noting that a licensed Money Broker is able to upgrade permissions in order to offer cryptocurrency. In the case where a Money Broker upgrades license permissions, it would also be considered a Digital Financial Service Provider.
How can one search for licensed digital financial services providers in Labuan?
A list of approved crypto exchanges in Malaysia can be found in a directory on the Labuan FSA website.
How long does it usually take to obtain a cryptocurrency license in Labuan, Malaysia?
A general estimate is 4 – 6 months once all supporting documentation has been provided. It will take approximately an additional month to receive bank approval.
Is it possible for Labuan Digital Financial Service Providers to launch an ICO / issue tokens?
Yes, regulations permit the launching of new tokens.
Does Labuan offer a “fast track” license application scheme?
Several years ago this option was offered by the LFSA but has since been discontinued.
What does Labuan FSA stand for?
FSA stands for Financial Services Authority. The Labuan FSA (LFSA) regulates digital assets / cryptocurrency in Labuan, Malaysia.
What regions offering cryptocurrency regulation are similar to Labuan, Malaysia?
Japan is the most well known regulator of digital assets in Asia, however, the process and requirements are more time and cost intensive when compared to Labuan. Cryptocurrency exchanges looking for a faster path to regulation will be more satisfied with Labuan than Japan.
Are there any restrictions on the issuance of stablecoins in Labuan?
No, licensed exchanges are able to issue stablecoins.
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