Our consulting team will advise on the suitability of this license for you.
Initial consultation with our experts
Company registration in Labuan
Legal address registration
Set of corporate documents (digital)
Application for the Digital Asset Exchange License in Labuan
AML/KYC policies and procedures
Assistance in appointing a Principal Officer
Assistance in appointing an AML Officer / MLRO
Physical office in Labuan
Accounting by a Labuan chartered accountant
Privacy-enhancing Director
Privacy-enhancing Shareholder
Corporate account opening assistance
Set of translated and notarized corporate documents (physical)
Legal documents package for your website "Doing crypto in Labuan"
EU-based AML courses with certificate
Complete set-up of a licensed crypto company in Labuan.
Initial consultation with our experts
Company registration in Labuan
Legal address registration
Set of corporate documents (digital)
Application for the Digital Asset Exchange License in Labuan
AML/KYC policies and procedures
Assistance in appointing a Principal Officer
Assistance in appointing an AML Officer / MLRO
Physical office in Labuan
Accounting by a Labuan chartered accountant
Privacy-enhancing Director
Privacy-enhancing Shareholder
Corporate account opening assistance
Set of translated and notarized corporate documents (physical)
Legal documents package for your website "Doing crypto in Labuan"
EU-based AML courses with certificate
Benefit from the full extent of Rengang’s crypto and legal expertise in Labuan.
Initial consultation with our experts
Company registration in Labuan
Legal address registration
Set of corporate documents (digital)
Application for the Digital Asset Exchange License in Labuan
AML/KYC policies and procedures
Assistance in appointing a Principal Officer
Assistance in appointing an AML Officer / MLRO
Physical office in Labuan
Accounting by a Labuan chartered accountant
Privacy-enhancing Director
Privacy-enhancing Shareholder
Corporate account opening assistance
Set of translated and notarized corporate documents (physical)
Legal documents package for your website "Doing crypto in Labuan"
EU-based AML courses with certificate
Projects like yours secured a Crypto Licenses with Rengangyongsheng
discover their experience of working with us
A perfect fit for our business
I highly recommend Legal to any entrepreneur or business seeking top-notch services for their company formation.
Tom
Best for Crypto Licenses
Best company for Crypto Licenses! Kudos to the team for making the incorporation of our company really smooth
Charlotte
Fast and Reliable
Quick set-up and straightforward process. It was a smooth process, we are happy to have chosen Rengang as our Partner for incorporations, globally.
Daniel
Highly recommended!
They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!
James
Excels at adapting to challenges
Rengang excels at adapting to challenges and demonstrates a perfect understanding of our business needs.
Alexander
A fruitful cooperation
As a result of the fruitful cooperation with Rengang, Yellow Card obtained a VASP registration, fast and without any legal complications.
Jack
PRICING AND PROCESS CRYPTO LICENSE LABUAN 2025
Crypto regulation/legislation in Labuan
Everything you need to know before taking action on the popular Labuan crypto license. Our experts advise getting a clear understanding of any crypto license framework before getting started. Our team is available for providing you with guidance, for free!
General information about the Labuan crypto license
The crypto license in Labuan is an evolving authorization to perform crypto activities, granted to companies registered in the island of Labuan, in Malaysia. This crypto license has been around since 2018 and has been evolving since then. Its regulatory authority, the Labuan Financial Services Authority, has been progressively issuing guidelines on the matter. The final framework shall be ready by 2025.
As of 2023, more than 60 companies have successfully secured the Labuan crypto license. Often compared to the Malaysian crypto license, it differs in the fact that it is regulated by a different institution, the Labuan FSA, while the Malaysian license is granted by the Securities Commission of Malaysia.
The Labuan crypto framework is then a sort of a legal hybrid between Malaysian law and rules issued in the Labuan International Business and Financial Center. It relies on the Malaysian Financial Services Act of 2013 and the Labuan Financial Services and Securities Act of 2010, on the Malaysian AML-CFT law, and on guidelines issued by the Financial Services Authority.
The cryptocurrency framework in Labuan is called DFS for Digital Financial Services. A license holder is called a Digital Financial Services provider. The crypto license allows for exchange services, custody, buying and selling of cryptocurrency, and possible other innovative services upon specific request to the FSA.
The Labuan crypto exchange license is suitable for medium sized to big projects. The minimum paid up share capital alone should be 1,500,000 MYR.
Labuan Crypto License: Process and Duration
Obtaining a crypto license in Labuan is notoriously long, as the timeline usually ranges over 6 months in total. The process is however straightforward. Since the license is still being progressively standardized by the regulator, it is currently dealt with directly by the Labuan Financial Services Authority.
Upon reception of an application that contains all the required information and documents, the Labuan FSA will assess the quality and solidity of the applicant. In a span of 4 to 6 months, it will summon company founders for interviews in order to assess their fitness and property, as well as their professional competence and aptitude to carry on a crypto activity.
The process involves the establishment of a company in Labuan with an actual office space. There are no residency requirements for personnel, but a director and a contact person should be appointed. The contact person will be responsible for communicating information relative to AML-CFT to the regulatory authorities, as well as being responsible for implementation and enforcement of the applicable rules and regulations. This implementation should be materialized in the form of documents such as policies, procedures and charts, to be presented to the FSA.
Banking is not an issue for a Labuan crypto company, as the opening of a bank account is a mandatory step to complete before carrying out the application to the FSA. The application is only receivable if the project has paid up the minimum required capital into its bank account, in the amount of 1,500,000 MYR.
The different types of crypto licenses in Labuan
The crypto license in Labuan is called the Digital Financial Services license. This license is often granted to financial institutions set in Labuan such as funds and investment banks, meaning it can be combined with other financial licenses for more elaborate business models.
The license itself distinguishes “exchange” services, “money broker” services and custodial services. As a company applies for the DFS license, it shall also register for one or more of these activities, in order to accurately describe the services offered.
These details shall be assessed directly from the Labuan Financial Services Authority at the beginning of the application process.
FACTS ABOUT THE LABUAN CRYPTO EXCHANGE LICENSE
Digital Financial Services license in Labuan
The Labuan crypto exchange license requirements are essentially the following:
Company registration in Labuan;
Opening of a bank account in Malaysia;
Deposit of the paid up minimum capital of 1,500,000 MYR;
Appointment of a director;
Appointment of a contact person;
Physical office located in Labuan;
AML-CFT policies and procedures, compliant with the 2023 FATF guidelines;
Internal audit and control procedures;
Detailed business plan;
Demo of how customers’ assets and money are segregated and protected.
The legality of cryptocurrency business in Labuan
The legal status of cryptocurrency businesses in Labuan is defined by the Malaysian laws and the specificities of the Labuan International Business and Financial Center (IBFC). In Labuan, the local authority named the Labuan Financial Services Authority (FSA), has issued guidelines applicable only in this region of Malaysia.
The legality of cryptocurrency activities in Labuan is then using the same basis as the Malaysian crypto license, the Capital Markets & Services Act 2007 and the Financial Services Act of 2013. It then builds up on this by the issuance of guidelines issued in order to create a framework dedicated to crypto: Digital Financial Services (DFS).
A crypto project willing to launch its activity legally in Labuan should have a good command of the Malaysian and Labuan laws, as the Labuan crypto license is a mixture of both.
Cryptocurrency regulation in Labuan
The cryptocurrency regulation in Labuan can be broken down into three legal aspects.
On the one hand, the main laws ruling over financial services in general are the Malaysian laws (Capital Markets & Services Act 2007 and Financial Services Act of 2013) as well as the Labuan Financial Services and Securities Act of 2010.
For compliance with combating financial crime, the Anti-Money Laundering, Anti Terrorism Financing and Proceeds of Unlawful Activities Act of 2001 is the applicable law.
These texts are setting the legal context in which financial actors, including crypto companies, should behave in Labuan. The topic of crypto companies is specifically tackled in the guidelines issued by the Labuan FSA:
FAQ on STO in Labuan;
Guidelines on technology management for DFS;
Guidelines on travel rule for DFS;
Guidelines on market conduct for DFS.
Labuan Virtual Cryptocurrency Registry
The registry of Labuan crypto companies is public and freely available on the website of the Labuan FSA. It lists all the Digital Financial Services Providers, the crypto licensed entities in Labuan. Unlike its Malaysian counterpart, it is frequently updated.
The register allows inquiring about licensed companies. The information listed in the register are the company name, its address, its phone number, an email address and the name of the contact person.
Crypto-authorization process in the Labuan Virtual Currency Registry
The crypto authorization process in the Labuan VASP register can be described as simple but not very easy. The application process is one of the simplest in the world, as it is entirely based on engaging directly with the authorities. However, the requirements to be met, before and during the application process, must be carefully considered.
The registration of Labuan Company in Register of crypto currency companies
Only companies incorporated in Labuan, into the International Business and Finance Center, can apply for a Labuan crypto license. To register a Labuan company in the registry of crypto currency companies, a project must send an application directly to the Financial Services Authorities (FSA), asking to be licensed as a Digital Financial Services provider (DFS provider).
The FSA will then make an assessment of the application by reviewing all the attachments. It may ask for additional information, documents, provide forms to fill and ask for interviews with the founding team.
The licensing process is straightforward but can last close to 6 months in best cases scenario, making it a significant time to market.
Governmental Statements on Crypto in Labuan
Labuan is a federal territory of Malaysia. It is an island located in the east of Malaysia, on the coast of Borneo. Since 1990, it has held the status of special economic zone, financial center and free trade zone.
Labuan is administered by the Labuan Corporation, which is very close to the Labuan Financial Services Authority. The FSA is the dedicated governing body for financial services and activities, including crypto, in Labuan.
Consequently, there is no such thing as a government of Labuan. There is an administrative entity and a financial authority, which are openly working together to attract companies and funds into Labuan, including digital assets service providers.
Requirements for companies engaged in crypto activities in Labuan
There is a certain number of requirements that a company must meet before applying for a VASP license in Labuan. The so-called DFS license is required to engage in crypto activities with a Labuan company.
Incorporating a company in Labuan is mandatory, as foreign companies cannot apply for the crypto license. The company must appoint a natural person as its resident director. This individual doesn’t need to be a resident of Labuan, and can be of almost any nationality. The company must have an office in Labuan.
The company should have policies and procedures showing its compliance with the latest FATF guidelines on anti money laundering and countering the financing of terrorism. Labuan also has its own AML-CFT law that must be taken into account, the Anti-Money Laundering, Anti Terrorism Financing and Proceeds of Unlawful Activities Act 2001. The law requires the appointment of a contact person to communicate with the FSA.
The Guidelines on Market Conduct issued by the Labuan FSA describe various areas of attention, where an applicant must prepare adequate systems and processes:
Cybersecurity and data protection;
Supervision and reporting of suspicious activities;
Internal policies on integrity and ethics;
Protection and segregation of customers’ funds and digital assets;
KYC and customer onboarding;
Auditing.
The applicant must also provide proof of deposit in a Malaysian bank of its paid up share capital, which should be a minimum of 1,500,000 MYR.
The process of setting up a company for a cryptocurrency business in Labuan
Labuan is famous for being business friendly, generally speaking. Incorporating a company in Labuan as the first stage of the process to get a crypto license in Labuan is therefore simple.
With the provision of certified documents pertaining to shareholders, a company can be created in approximately 2 weeks. It does not require significant change after registration, in order to get the crypto license. The main topic of interest with the incorporation is to open a bank account in Malaysia.
Taxation for cryptocurrency companies in Labuan
Labuan benefits from a different, more advantageous taxation regime than the other Malaysian federal regions. The only applicable tax for cryptocurrency companies in Labuan is the income tax on non-trading profits, which is 3%.
Capital gains and dividends are not liable to any taxation in Labuan.
Obligations for crypto companies in Labuan
Labuan crypto companies are held to a high standard of conduct. They must comply at all times with a certain number of rules, expressed in the guidelines issued by the FSA.
Supervision, monitoring and reporting of suspicious activity, as defined by the FATF guidelines and the AML-CFT law of Labuan, shall be performed at all time by the contact person of the crypto organization.
The Digital Financial Services (DFS) provider must train its staff on AML-CFT and good practices on a yearly basis.
The handling of clients information, assets and money should be done through proven systems that are regularly audited. A record should be maintained, subsequently.
The crypto company should take necessary measures to prevent market manipulation, conflicts of interest and other abusive activities.
The terms of business and client information in general should be transparent and publicly available. It should not mislead clients.
The crypto licensed company should pay the annual fee for its license, in the amount of 5,000 MYR (approximately 1,115 USD / 1,090 EUR).
Sanctions for violating Labuan crypto-business obligations
It is strictly forbidden to carry out crypto activities without a license in Labuan. Such wrongdoing is considered an offense and will lead to the closure of the company. The beneficiary of the company will face up to 10 years of imprisonment and a fine of up to 5,000,000 MYR (approximately 1,115,000 USD / 1,090,000 EUR).
If the minimum share capital requirement is breached, the company will be liable to pay a fine of up to 25,000,000 MYR (approximately 5,578,000 USD / 5,445,000 EUR) and the beneficiary may be convicted to 8 years of jail time.
The Financial Services Act of 2013 describes many such cases of law infringement, that are punished by imprisonment and hefty fines. Though a business-friendly jurisdiction, Labuan is also reputed for being strong in combating financial crime.
STEP-BY-STEP GUIDE TO THE LABUAN CRYPTO PERMIT
How to obtain a crypto license in Labuan
To obtain a crypto license in Labuan, the process is simple. Despite its length, which can go over 6 months, obtaining a VASP license in Labuan does not require a lot of steps.
STAGE1 2 weeks
ESTABLISHMENT OF A COMPANY IN LABUAN
Only a company registered in the Labuan International Business and Financial Center can apply for the crypto license in Labuan.
Certified copy of the passport of all participants
Certified proof of residence of less than 3 months
3 company names
Contact details of all participants
Detailed business plan
STAGE2 4 weeks
OPENING OF A CORPORATE BANK ACCOUNT
One of the principal requirements of the Labuan crypto license is to deposit the minimum share capital to undergo a money broker business (as defined by Labuan regulations). The deposit has to be done in a Malaysian bank.
Opening of a corporate bank account for the Labuan company
Writing and deposit of the minimum share capital
Appointment of a resident director (which doesn’t actually have to be a resident)
Appointment of a contact person (for AML-KYC duties)
STAGE3 6 months
APPLICATION TO THE CRYPTO LICENSE IN LABUAN
Once the company is formed and the bank account is opened, the application can be carried out to the regulatory authorities. A study of the applicant will begin and last for 4 to 6 months.
Drafting of AML-KYC policies and procedures, compliant with the Malaysian, Labuan and international laws
Infrastructure set-up for segregation and protection of customers money and assets
Cybersecurity assessment and stress test of the platform
Client onboarding rules: risk assessment, KYC and transparency of information
Internal audit procedures
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