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Obtain Labuan Token License

Labuan Crypto License

A credit token business under Labuan Law is defined as any business where a token, being a cheque, card, voucher, stamp, booklet, coupon, form or other document or thing is given or issued to a person by the person carrying on the business.

A credit token business under Labuan Law is defined as any business where a token, being a cheque, card, voucher, stamp, booklet, coupon, form or other document or thing is given or issued to a person by the person carrying on the business.
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Licensing Services

Timeframe: around 6 months

Minimum paid up capital: Not prescribed


Overview

Labuan is an island and a Federal territory of Malaysia, which offers one of the strongest regulatory frameworks for various financial service companies. This, along with the favorable tax system, makes Labuan a prestigious place where to start a Token Licensed Business. According to local laws issuer of such tokens undertakes that:

  • on the production of the token, whether or not some other action is also required, the issuer will supply cash, goods or services on credit; or
  • where, on the production of the token to a third party, whether or not any other action is also required, the third party supplies cash, goods or services, the issuer will pay the third party for them, whether or not deducting any discount or commission, in return for payment to be made thereafter to the issuer by the customer.

Currently, there is no minimum paid-up capital for credit token business prescribed by LFSA. However, the Regulator may impose the requirement in their conditional approval letter to ensure that the capital is in accordance with their business activities. Such capital may be required to be paid in amount up to RM 1 000 000.00 which is an equivalent of approximately USD 250 000.00.

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Licensing Criteria and Procedures for Applying for a Cryptocurrency Exchange License in Labuan

Notable features
Procedure
Documents Required

General information

Company structure

  • At least 1 shareholders (can also be a legal person, no nationality or residency restrictions*);
  • At least two directors (can only be natural person, no nationality or residency restrictions*).

*Restrictions may be imposed by Bank instead.

Taxation

  • 3% of audited profits or fixed price per year MYR 20 000 (based on company’s preference can be chosen on or the other

Accounting & audit requirements - A Labuan Offshore Company needs to have an audit performed by an approved auditor. An annual return must be filed 30 days prior to the companies’ anniversary date of incorporation. A set of accounting records must be kept in Labuan.

Secretary - Resident secretary, provided by local trust company

Local office - Required, local trust company

Registered Agent - Required, local trust company

Local employees - Required

Company name

  • Language: Any
  • Letters: From Roman alphabet
  • Company name must end with such sufixes or their abbreviations: Limited, Corporation, Incorporated, Societe Anonyme, Sociedad Anonima. If the Malaysian word Berhad is used then it must be preceded by "(L)" to denote that the company is incorporated in Labuan
  • Names Requiring Consent or a Licence: Bank, buildings society, insurance, assurance, reinsurance, fund management, investment fund, trust, trustees, Chamber of Commerce, university, municipal or their foreign language equivalents

N.B.

  • Restricted connections for company name: name of state, national or local government.
  • Any name that implies illegal activity or implies royal or government patronage is restricted.
  • Registrar may reject any name which it considers undesirable or contrary to the public interest.
  • Company name is restricted to be identical or similar that of an existing company.
  • In case when foreign language is used for company name the translation must be provided to Registrar which will ensure conformity to above listed restrictions.

In order to obtain a license, the following steps will be carried out:

  • Gathering and preparing of the documents for initial verification
  • Once the verification is done and initial paperwork is prepared, the originals must be couriered
  • Other relevant documents should be provided to the LFSA based on their requests
  • Application will be processed with the LFSA for the license
  • Conditional approval will be provided by LFSA so to enable to have enough time (usually 3 months) to:
  1.  - fulfil the capital requirements for the company
  2.  - find and set-up an office
  3.  - apply for the phone number
  4.  - find a local employee
  5.  - comply with other requests

In order to obtain license, Offshorelicense will fill all necessary application forms and also acquire apostilled corporate documents. 

For that reason, please provide us with the following documents.

For bank:

(Each beneficial owner, shareholder, director, authorised signatory must provide)

  • A notarized copy of valid passport
  • A copy of proof of residential address (ex. utility bill that is not older than 3 months)
  • A notarized copy of Letter of Reference form Bank, Attorney or Accountant

For local regulatory authority:

(Each beneficial owner, shareholder, director, authorised signatory and secretary must provide)

  • CV
  • A notarized copy of valid passport
  • A copy of proof of residential address (ex. utility bill that is not older than 3 months)
  • 2 Professional letters from a notary, lawyer, auditor or similar
  • A notarized copy of a University Diploma
  • Bank reference
  • For shareholder: 3 months bank statement with enough funds to cover the capital requirements

N.B.

  • If documents are not in English language or language of particular country, then they must be accompanied by a notarized translation.
  • Please ensure that notarization is in English language if not then please provide with notarized English translation.

Additional documents may be requested by the regulatory authority or local Bank at any point to certify specific information