LABUAN CRYPTO EXCHANGE LICENSE
Labuan Jurisdiction welcome anyone who is interested to set up a Compliant Cryptocurrency Exchange to operate in an offshore environment to enjoy lower tax and owned 100% without local Malaysian interference. Legalize your Cryptocurrency Exchange to operate in Labuan under the supervision and regulation of Labuan Financial Services Authority. Competent KYC (know your client) and compliance system for onboarding and maintenance on clients and ICO (initial coin offering) companies are recommended to plug-in to comply with Malaysia Anti-Money Laundering regulations and law to enable your business to stay long and prosperous. For Labuan Crypto Exchange intends to launch the ICO at the same, it is permitted. For more information, please refer to Labuan Company For ICO License.
12 Key Advantages of Setting Crypto Exchange @ Labuan
- 100% Foreign ownership, no need Malaysian local partners
- Profit TAX only 3%.
- ZERO Withholding Tax on Interest, Management, Royalty and Technical Fee
- NO Stamp Duty and GST
- NO Import Duty / Sales/ Service Tax
- NO Capital Gain Tax and Inheritance Tax
- NO Tax on Dividends to Shareholders
- Able to access to more than 70 Malaysia Tax Treaty partners
- 50% Tax rebate for Expatriate employment
- 100% Tax exemption for Director’s fees for foreign directors
- Eligible to apply for two (2) years’ multiple entry work permits for their expatriates to stay in Malaysia
- Corporate investors can set Labuan INVESTMENT HOLDING to enjoy ZERO Tax!
Eligibility To Apply
- Licensed Crypto Exchange in other jurisdictions OR New Cryptoprenuers with minimum 1-2 years’ experience with solid exchange business model
- Financial Proof of min. USD 200,000. Paid up capital: RM500,000 will be initiated after the license has been approved.
Approval timeline: approx. 45-60 days. Yearly license fee: RM5,000 (USD 1,500) only. Preliminary meeting with Labuan FSA authority may be required depends on the complexities of the business model.
Regulatory and Operational requirements for Labuan Crypto Exchange/Money Broking License, after approval, is as follows:
- Minimum paid up capital of RM500,000 (USD 125,000 approx.) unimpaired by losses with a certificate of evidence from the banks within Malaysia or Labuan
- Must maintain an operational office in Labuan and all transactions must be done to, through and from Labuan. Can apply for Marketing office in Kuala Lumpur and/or Iskandar
- Transact in foreign currencies of your choice, except with Malaysian Ringgit
- No transactions are permitted to be done with Malaysian residents, other than authorized dealers approved by the Malaysian Exchange Control
- The company shall impose a maximum leverage limit of 100:1 on clients’ trading transactions (i.e. a minimum of 1% margin deposit to enable the opening of trade position). Example: if the transaction is USD100,000, then the margin requirement is USD1,000
- Ensure the counterparties ie principal broker or liquidity provider are regulated by a recognized supervisory or authority
- It is necessary to obtain approvals from the authorities who intend to operate prior commencing the business in those respective markets and such approvals have to be copied to Labuan FSA
- Where technology client interface is deployed, any intrusions or malfunctions of the systems incidents discovered must report to Labuan FSA with root cause and impact analysis report to be submitted within 14 days
- The company must appoint an approved external auditor to carry out an audit of business operations annually
- Maintain a separate account for clients’ monies and marked clearly each clients monies in record and client’s withdrawal has to be done within 3 working days
- Have proper written agreements and contracts with clients and any parties
- The money broking company must have a principal broker, liquidity provider, trading platform provider and copies of agreements
- Ensure compliance with the AML/CFT Act and Guidelines issued by Central Bank of Malaysia and Labuan Authority with a compliance officer hired
- Any changes on shareholders, directors, office location, additional office outside Labuan and outsourcing arrangements required to obtain approval from Labuan FSA
- Yearly license fee payable to Labuan FSA is RM5,000 (USD 1,500) and Marketing Office is RM7,500 (USD1,800).
We provide total complete solutions for Labuan Crypto Exchange License application:
- Advisory, crafting Business Plan, Operation System manuals, AMLAH/KYC manuals and all other documents required by the relevant authorities
- Due diligence, preparation of all necessary documents for the application form submission to approval follow-up including arranging an interview with Labuan FSA (if any) and compliance officer qualifying
- Advisory on the right company structure
- Compliance Operation System set up, reporting guidance
- Act as a liaison person
- Bank account set up on shore and offshore
- Operation office set up @ Labuan
- Marketing office set up @ Kuala Lumpur/Iskandar
Feel free to contact us by sending us an inquiry on Labuan Crypto Exchange License for your eligibility by emailing us at email@example.com. We ‘simplify the complexities’ doing Blockchain business in Labuan.