Regulations for Crypto license in Labuan

The Labuan Financial Services Authority (LFSA), established under the Labuan Financial Services Authority Act 1996, operates as the regulatory and supervisory body for financial entities in Labuan including crypto related activities. Its key goals include:

  1. Developing Labuan into a premier international business and financial services hub.
  2. Acting as the primary regulatory, supervisory, and enforcement body within Labuan’s international financial services sector.
  3. Monitoring financial activities.
  4. Establishing regulations and ensuring adherence to standards.
  5. Managing the issuance and revocation of licenses as required.

Taxation of cryptocurrency companies in Labuan

  • The corporate income tax is competitively set at 3% on global net income.
  • Dividends are exempt from withholding tax.

Types of crypto licensing in Labuan

Permitted activitiesDescription of activity
Cryptocurrency Exchange
  • Enables companies to operate digital platforms for trading digital assets, including cryptocurrencies.
Crypto-to-Crypto and Fiat-to-Crypto Trading
  • Facilitating the buying and selling of digital assets, allowing transactions between different cryptocurrencies or between fiat and cryptocurrencies.
Listing Digital Assets
  • Providing a platform for digital asset issuers to list their assets for investors, broadening investment opportunities within the crypto market.
Digital Asset Custody
  • Safeguarding cryptocurrencies on behalf of clients, ensuring security and compliance with regulatory standards.
Transaction Settlement
  • Ensuring the accurate and timely settlement of digital asset transactions, maintaining trust and reliability in the crypto ecosystem.
Token Issuance
  • Facilitating the creation and distribution of digital tokens to investors as part of fundraising efforts.
Brokerage Fees
  • Charging appropriate fees for brokerage services provided, ensuring they are adequate and aligned with market standards.

Overview of requirements to obtain crypto license in Labuan

  • Form a company under the Labuan Companies Act to ensure legal operation within the jurisdiction.
  • Prepare necessary legal documents required for applying for crypto license in Labuan.
  • Appoint a minimum of two directors, Anti-Money Laundering (AML) officer and a Local Secretary to oversee compliance and operations.
  • Secure a minimum paid-up capital of RM500,000 (around 110,000 USD) to demonstrate the company’s financial stability.
  • Fit and Proper Standards: Ensure all team members meet high standards of integrity and professional conduct, adhering to fit and proper criteria.
  • Establish a physical business presence in Labuan, including essential functions like record-keeping and administrative activities.

Estimated time frames to obtain crypto license in Labuan

Company formation

1-2 weeks

Documents preparation

4 weeks

License application and approval

8-12 weeks*

* The timeline also depends on the workload of LFSA and any clarifications and queries that LFSA may request in relation to the application

Legal services for obtaining Crypto license in Labuan

Basic Package

available on request

  • Company registration
  • Provision of Legal Address for 1 year
  • Corporate documents
  • AML/KYC Policy (Anti-Money Laundering/Know Your Customer)
  • Crypto license obtainment
  • Communication with regulator authorities
  • Assistance with employment of AML officer and Directors
  • Legal Support throughout the entire project

This package meets the minimum regulatory requirements for establishing a licensed crypto company in Labuan

Additional services on request

  • Accounting services
  • Additional corporate account
  • Assistance with share capital contribution
  • Bank account for keeping client’s funds (safeguard)
  • Apostilled corporate documents
  • Business plan
  • AML/CFT Training material
  • Legal framework for launching Your Token

Ready-Made solution

available on request

  • Registered company
  • Legal address for 1 year
  • No debts, no liabilities – clean company
  • Registered share capital
  • Active license
  • Corporate documents
  • Assistance with transfer of ownership

Eriks Fijalovs

Head of Blockchain and Crypto

Requirements for Crypto licensing in Labuan

List of required documents

  • Curriculum Vitae (CVs): Provide CVs for shareholders and team members to highlight their experience and qualifications, ensuring a competent and skilled workforce.
  • Reference Letters: Obtain reference letters for each key individual to verify their professional background and integrity, thus enhancing the business team’s credibility.
  • Business Plan: Submit a comprehensive business plan that details business goals, service offerings, target markets, revenue forecasts, financial performance projections, manpower requirements, and equity structure, demonstrating the company’s strategic and operational plan.
  • Proof of Funds: Show sufficient financial resources to support company operations, ensuring sustainability and stability.
  • Manuals and Policies: Document and submit comprehensive internal policies and procedures to ensure regulatory compliance and maintain operational integrity, including Anti-Money Laundering (AML) and operational manuals.
  • Business Address Documentation: Provide evidence of the business’s physical presence in Labuan with documentation of the main place of business and an address for service. If applicable, include proof of a business address outside Labuan.
  • Fitness and Propriety Standards: Certifying that all personnel adhere to high standards of fitness and propriety, reinforcing organizational trustworthiness and ethical conduct.
  • Auditor Engagement: Engaging an approved external auditor to conduct annual audits, validating the financial health and operational transparency of the company.

Share Capital and Government Fees

  • Minimum Paid-up Capital: For crypto license in Labuan it is necessary to contribute a minimum paid-up capital of 110,000 USD or 500,000 RM.
  • Application Fees: For submission application for crypto license in Labuan it is necessary to pay 10,000 USD as specified by Labuan FSA.

Personnel Requirements

  • 2 Directors: tasked with the ongoing responsibility of adhering to regulatory standards and compliance.
  • Company Secretary: Appoint a company secretary who resides in Labuan and is responsible for monitoring compliance with laws and the company’s obligations.
  • AML Officer: Appoint an Anti-Money Laundering (AML) officer to ensure compliance with AML regulations and to oversee related processes and reporting.

Business premises requirements

  • Setting up and maintaining a registered office is essential for obtaining crypto license in Labuan. It demonstrates a commitment to operating within the regulatory framework and ensuring proper record-keeping practices are adhered to.

Roadmap of obtaining crypto exchange license in Labuan

For more detailed road map of the project and commercial offer – get in touch with our crypto professional.

Eriks Fijalovs

Head of Blockchain and Crypto


Initial Setup

The initial phase focuses on thorough due diligence for all company stakeholders, ensuring compliance with Labuan’s regulatory framework. Legalaes assists in preparing essential documents, including agreements, business plans, and compliance manuals, customized to meet Labuan’s specific crypto regulations. This step is important for organizing a comprehensive application package for submission to the Labuan Financial Services Authority (LFSA).


Company incorporation

This step involves incorporating a company in Labuan under the Labuan Companies Act, ensuring a well-defined shareholder structure. This includes detailing team members and establishing the official company address in Labuan.



During the submission phase, attention shifts to a meticulous review and submission of the complete application package to the LFSA for crypto license in Labuan. Simultaneously, the process for opening a bank account, accommodating both local and foreign currencies, is initiated.


HR & Compliance Team

Legalaes offers options for selecting experienced local compliance teams familiar with Labuan’s regulatory environment. This extends to supporting the recruitment process, ensuring that the selected personnel meet LFSA requirements.



Ongoing communication with the LFSA is crucial to address any inquiries or requests for additional information. The setup of the bank account continues, with a focus on providing any required documentation.



Upon securing approval, Legalaes assists in completing the formalities to receive the official Money Broking License with an extension to crypto services from the LFSA, including acquiring the Certificate of Incorporation.


Operational Launch

With the license obtained, companies can commence their operations under Labuan’s regulatory framework. Legalaes remains supportive, offering continuous assistance in compliance monitoring and regulatory reporting to ensure adherence to LFSA guidelines.

Advantages of the Crypto license in Labuan

Links for legislation related to Crypto license in Labuan

This act forms the legal foundation for financial and securities services in Labuan, managed by the Labuan Financial Services Authority (LFSA). Its goal is to enhance and develop Labuan as a global financial hub, ensuring the integrity and stability of its financial system. Covering a broad spectrum of financial activities such as banking, insurance, and Islamic finance, it provides a comprehensive regulatory framework that supports business flexibility and adherence to international standards.

This act outlines measures to combat money laundering and terrorism financing in Labuan. It specifies the responsibilities of financial institutions in identifying, preventing, and reporting transactions suspected of being linked to criminal activities.

This act governs the incorporation, regulation, and dissolution of companies in Labuan. It is designed to facilitate business operations, providing a framework for the establishment and management of both domestic and international companies in Labuan.

This document provides detailed guidelines for obtaining a money broking license in Labuan, including the regulatory requirements and procedures to be followed to ensure compliance with Labuan’s financial regulations.

This act establishes the Labuan Financial Services Authority (LFSA) as the regulatory body for financial services in Labuan. It defines the powers and functions of the LFSA, including the oversight of financial institutions, issuance of licenses, and enforcement of financial services laws. The act aims to ensure effective supervision of Labuan’s financial services sector, promoting its development while safeguarding the interests of investors and the public.

Labuan crypto license regulatory body

FAQ about Crypto license in Labuan

1. Why choose Labuan for a crypto license?

Labuan provides a competitive license that is recognized worldwide and is particularly popular in the Southeast Asia region. Many crypto exchanges have chosen Labuan as their primary location due to its straightforward and widely acknowledged licensing process.

2. Will having a license from another country affect my application in Labuan?

Possessing a license from another country can be advantageous for your Labuan application. It can expedite the process and demonstrate that your business adheres to high standards, making your company more reputable in Labuan.

3. How can my clients verify the authenticity of my Labuan license?

Clients can verify the authenticity of your Labuan license by checking the official registry on the Labuan Financial Services Authority's website, where all licensed businesses and their contact details are listed.

4. How long does it take to get a license in Labuan?

Obtaining a license can take between 12 to 18 weeks, depending on your business’s preparedness and specific model. This timeframe allows the regulator to review your application thoroughly and request any additional information if necessary.

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