Labuan Moneybroking License for Cryptocurrency Exchange
Labuan Jurisdiction welcomes anyone who is interested to set up a Compliant Cryptocurrency Exchange to operate in an offshore environment. They can enjoy lower tax and owned 100% without local Malaysian interference. For those who are in the Crypto Exchange business, they can Legalize their Cryptocurrency Exchange to operate in Labuan under the supervision and regulation of Labuan Financial Services Authority.
Companies are encouraged to have up to date and 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.
10 Key Advantages of Setting Crypto Exchange @ Labuan
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.
How To Get Started
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 anywhere in Malaysia
- 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 the 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 crypto exchange 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 USD1,500 and Marketing Office is USD2,500.
TRICOR TRUSTCO provides a one-stop application solution for Labuan Crypto Exchange License includes:
- Advisory, crafting Business Plan, Operation System manuals, AMLA/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
- Submission and supervise the application process
- Act as your liaison and contact point with Labuan FSA for all correspondence and arrange an interview (if any)
- Track the license approval and attend all queries from Labuan FSA
- Advisory on the right company structure after approval
- Compliance Operation System set up, reporting guidance
- Bank account set up onshore and offshore
- Operation office set up @ Labuan
- Marketing office set up @ anywhere in Malaysia
WHY TRICOR TRUSTCO for Your LABUAN SET UP?
We are a full-fledged licensed Labuan Trust Company (Trust License No. LT 0034) with a highly experienced team of dedicated professionals handle all license applications. We provide complete “one-stop” solutions in pre-assess, meet, planning, structuring, establishment and corporate service for your Labuan Crypto exchange Business, ensuring you get a bespoke service that meets your crypto exchange business needs as well as onwards operation.
Feel free to contact us at +603-279839191 (Labuan Division) or send us an inquiry on Labuan Crypto Exchange License to check on your eligibility.TRICOR’s One Labuan Platform easy to elevate your Labuan operation efficiently!
Trade Without Barriers
Tap into ASEAN Market Through Labuan
Labuan Blockchain and Crypto
Labuan Wealth Planning
Labuan Tax Matters
We are offshore and onshore business advisory expert to assist you in your business set up in Malaysia!
Get advantage being our clients to have free to access for complete advise from us on latest regulations, updates and requirements for your business and residency opportunities in Malaysia anytime, anywhere!
For everything about business investment in Malaysia for foreigners as well as onshore business business expertise, check out our complete information at www.MalaysiaBizAdvisory.com