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 Labuan crypto exchange license.
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. 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.
This country 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.
A Labuan crypto license can be issued only if eligibility criteria are satisfied. These statements include the following types:
Overall, this process is finished in one-two months.
The lawyers of Eternity Law International can help you open a crypto exchange in Labuan. If you are interesting in working in this jurisdiction, please contact us for further details on getting Labuan crypto exchange license.
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