Open a Cryptocurrency Company in Labuan: License and Setup

Our team provides full assistance for the process of incorporating a cryptocurrency business in Labuan (which means also obtaining the crypto license). You can rely on our team of consultants in company incorporation in Labuan if you need legal representation in the process of setting up a cryptocurrency company.

Quick Facts
What classifies as a Crypto Company in Labuan?	A cryptocurrency company refers to any type of business that has as a main activity mining, trading, exchanging cryptocurrencies, such as Bitcoin or Ethereum.
Taxes paid by cryptocurrency companies in Labuan	– corporate tax (3%), – employment taxes
Tax exemptions (if applicable)	Many tax exemptions are available, such as: – the withholding tax on interest and royalties, – the technical fee, – the stamp duty, – the import duty , – the capital gains tax, – the inheritance tax, – the services tax, – the tax on the dividends obtained by shareholders.
License necessary (yes/no)	Yes
Activities with cryptocurrency license requirements	– crypto exchange companies, – digital assets exchange businesses, – cryptocurrency providers, – any other type of cryptocurrency businesses dealing with the transaction of such currencies
Timeframe to obtain the cryptocurrency license	– 30-60 days (the pre-approval procedure); – overall, it can increase to 4-6 months
Minimum capital required for crypto businesses	RM 1,500,000 paid-up capital for a Labuan money broker that also handles digital assets (other licences have their own minimums)
Foreign owernship rules	Foreign investors are allowed to own 100% of the company’s shares, they do not need a local partner.
Immigration requirements for foreign investors	Foreign investors are required to apply for suitable visas in order to live here and develop their business activities.
Company incorporation procedure for crypto companies	A cryptocurrency company in Labuan follows the same incorporation steps as required for any other business activity (prepare the statutory documents, obtain certificates and licenses from the local institutions, register for taxes, etc.)
Main regulatory institution	Labuan Financial Services Authority
Documents for the issuance of the crypto license	– a business plan for the company that will operate in Labuan, – personal information on the shareholders and directors and their qualifications in the field, – when the applicant is a corporate entity, the audited accounts of the company are necessary, – specific documentation concerning cryptocurrency procedures (such as the Anti-Money Laundering rules).
Yearly fee applicable for the crypto license (yes/no)	Yes
Regulations and laws applicable to crypto companies	– Anti-Money Laundering, – Know Your Customer (KYC), – operations procedures, – Labuan Financial Services and Securities Act 2010, etc.
Open a physical place of business/ open a corporate bank account required (yes/no)	Yes, for both

How can I set up a cryptocurrency company in Labuan?

Opening a cryptocurrency company in Labuan should follow the next steps:

choose the type of company – a Labuan company (licences are not issued to sole proprietorships);
register the company – submit the required documents and register the company, according to the Labuan Companies Act 1990;
obtain a license and the necessary permits – in order to set up a cryptocurrency company in Labuan you will need to apply for a license;
open a bank account with a bank in Labuan.

What are the main requirements of setting up a crypto business in Labuan in 2026?

Below, our consultants in company registration in Labuan have highlighted some of the main aspects foreign investors should be aware of:

businessmen are required to invest a paid-up capital of minimum RM1,500,000 (for digital-asset money broking) for this type of business activity – please mind that this is the minimum requirement, but depending on the type of crypto activity you will carry out, capital requirements can increase;
one must apply for a Labuan crypto exchange license, which can be issued over a period of 3 to 4 months;
foreign businessmen can also start an initial coin offering (ICO) platform, and for this, they will need to invest $100,000 and make proof of having at least 3 years of profitable business activity;
one can also register a crypto fund in Labuan, and each investor must invest at least RM 250,000 (funds with up to 50 investors) or RM 500,000 (any number of investors) (less than 50 or more than 50);
those who set up a cryptocurrency company in Labuan will pay a corporate tax charged at a rate of 3%.

What other minimum capital requirements can be imposed on cryptocurrency operators in 2026?

Depending on the crypto activities carried out and the type of crypto license held, crypto businesses may need significant larger capital requirements, some of which are presented below:

minimum RM1 million for crypto operators involved in the issuance of e-wallets, blockchain payment tokens, etc.;
minimum RM1,5 million for Over the Counter (OTC) desks;
minimum RM5 million for trading platforms.

Is it always necessary to apply for a crypto license?

The licensing requirements can vary based on the specific crypto activity that will be developed here. For instance, those registering a crypto fund do not need a license, but a Labuan crypto exchange license is necessary for operations involving the transaction of cryptocurrencies.

What types of crypto licenses are available in Labuan?

There are several types of crypto licenses, such as:

Digital Assets Exchange license;
Credit Token (Digital Issuer) license;
Labuan Money Broker (Digital) license.

What is the documentation necessary for the issuance of a Labuan crypto exchange license?

Investors who will set up a company in Labuan as a crypto business must prepare a file that will be reviewed for the purpose of obtaining the license. The file must contain a set of mandatory documents, which include the following:

a business plan for the next 3 years of activity, that will contain the company’s projected revenues;
paperwork concerning the experience of the company’s representatives in the field of cryptocurrency;
financial documents issued by banks through which the founders can testify they have the necessary capital for starting a business;
documentation attesting that the investors have taken the necessary steps to open a corporate bank account at a local commercial bank in Labuan;
for the issuance of a Labuan crypto exchange license, investors must secure a registered address here;
it is also required to present personal information on the shareholders and directors.

Below, you can watch a short video on how to set up a cryptocurrency company in Labuan:

What is the main institution involved in the registration process?

The process of company formation in Labuan for a crypto business falls under the supervision of the Labuan Financial Services Authority (LFSA).

Do I need to have a physical office in Labuan?

Yes, in order to open a cryptocurrency company in Labuan it is necessary not only to have a registered address, it is also required to have a physical office.

Can I fully own a crypto company as a foreign investor?

Yes, the legislation allows foreign investors to open a cryptocurrency company in Labuan that has 100% foreign ownership.

Below, you can read our infographic on how to set up a crypto business in Labuan:

What are the main employment rules I should be aware of when hiring foreign workforce?

Provided that you want to open a cryptocurrency company in Labuan, you must be aware of the employment regulations applicable for this type of activity. In the list below, our consultants, specialized in company formation in Labuan, present some of the main rules:

the crypto company must hire at least 2 full-time employees (locals and/or foreigners);
provided that you will hire foreigners, you need to complete immigration formalities and obtain work permits, which are valid for a period of 2 years (the permit is necessary for all individuals who are employees in managerial positions or executives);
individuals who are hired as professionals or on managerial positions could benefit from a 50% tax exemption on employment income only up to YA 2020 (the incentive has expired);
if the company will hire a foreign, non-resident director, the person benefited from a 100% tax exemption on director’s fees up to YA 2025 (no extension for 2026 gazetted at the time of writing).

What are the tax benefits for cryptocurrency companies in Labuan?

Foreign investors must know that they are not required to pay the following taxes:

the withholding tax on interest, royalties or management fees;
the stamp duty;
the sales and service tax (Labuan is a designated area; GST was abolished in 2018);
the capital gains tax;
the withholding tax on dividends.

We invite you to contact us if you want to open a cryptocurrency company in Labuan.