Eternity Law International — News — Crypto license in Labuan

Crypto license in Labuan

Published:
July 11, 2022

Labuan is included in the list of the most favorable jurisdictions for running business globally in terms of taxation also for crypto companies. Being a local regulatory agency, the independent regulator of finance branch LFSA continues to provide fit-for-digital business structures to attract various digital financial-related business to the country. Hence, to establish a cryptobusiness in an offshore area, it is compulsory to get crypto license in Labuan.

Overview of Crypto Exchange Licensing in Labuan

As a tax-low jurisdiction with a business-friendly regulation, Labuan allows crypto businesses to conduct their services in the country where the entities are registered possessing Labuan crypto license. Low operating expenses and a status of a fully compliant legal system are the key advantages for many business people working in the field of digital assets.

In 2018, the LFSA involved exchanges to its legal field by covering them by license offerings. As defined, an exchange is a marketplace that delivers to digital asset owners the possibility to list their offerings for investors to contribute or trade in various ways: ‘crypto2crypto’, ‘fiat2crypto’ or vice versa.

The option to obtain crypto license in Labuan allows working with overseas markets with a corporate taxation rate of 3% whilst the standard Malaysian corporate taxing rate is 24%. In 2019, Fusang Exchange received its permission from the LFSA, becoming the first Asian completely authorized exchange. The LFSA has taken a number of efforts to regulate digital assets market, thus the business is legal with full AML-TF law compliance. Thus, to obtain crypto license Labuan is a strict and big deal requiring professional help.

Main peculiarities of a crypto exchange licensing in Labuan

Crypto license in Labuan is quite appealing because of next-mentioned reasons.

  1. Foreigners can establish companies with 100% full ownership.
  2. 3% corporate taxation rate.
  3. No government-imposed limitations on the purchase and/or sale of currencies.
  4. No taxation on interests, management fee, royalties.
  5. 50% tax abatement for foreigners’ employment; two-year working visa (with the possibility to renew).

Criteria for becoming licensed and to get crypto license in Labuan

To obtain crypto license in Labuan capital-holders need to meet next-mentioned.

  1. Paid-in capital.
  2. A registered office.
  3. Transactions available in multiple currencies.
  4. Servicing local residents is not bounded.
  5. Nomination of an auditor.
  6. All negotiations and contracts with clientele and any party must be put on record.
  7. Adherence to the AML rules and normatives by the Central Bank and LFSA.
  8. Any replacements as of senior management, office, share holders, branches outside the country must be approved by LFSA.
  9. A license fee is 40 thousand Malaysian Ringgits per year (close to USD 10 thousand).

Entrepreneurs may also take the opportunity of crypto license in Labuan for sale. It’s completely ready-for-use decision.

Obtain crypto license Labuan: forms needed for a crypto license application

  1. A business program for three years with its forecast of future revenues and expenses.
  2. Data about senior management and shareholders.
  3. Anti-money laundering policies and procedures.

Overall, this process is finished in one-three months.

The lawyers of Eternity Law International can help you open a crypto exchange and get crypto license in Labuan. If you are interesting in working in this jurisdiction, please contact us for further details on getting Labuan crypto exchange license. We can offer you crypto license in Labuan for sale and our professional help in making a deal.

Please contact us to get more information.

You can also see other offers in category Cryptocoins and licensing of cryptocurrency operations, ready-made companies, banks for sale and licenses for sale.

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