Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right Labuan route and leads the file all the way to the compliant launch, including banking and payment rails.
Get a crypto license in Labuan.
Labuan is Malaysia's offshore centre with a real crypto framework - Labuan FSA licenses digital financial services and exchanges under the Labuan Financial Services and Securities Act. The draw is a 3% tax on international activity, an Asian time zone and the right to serve the world, everywhere except Malaysia's own market. We build the company, the licence and the substance end to end.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
Labuan in brief
An offshore Asian base at 3%.
Labuan is a federal territory of Malaysia and its international business and financial centre, with its own regulator - Labuan FSA - and its own rules. Digital-asset business is licensed under the Labuan Financial Services and Securities Act, typically as a money-broking licence with a digital-financial-services extension or as a Labuan exchange licence, covering exchanges, brokers, token issuers, wallet and custody services and payment operators. It is offshore, but not unregulated: applications carry fit-and-proper checks, an AML/CFT programme and real substance conditions.
The pull is the combination. Labuan taxes international activity at 3%, sits in an Asian time zone with access to a deep regional talent pool, and lets a licensed entity serve clients worldwide - the one carve-out is Malaysia's own domestic market. What you build is a Labuan company with genuine substance - a Labuan-resident company secretary, an AML officer, a physical office and local operating expenditure - plus the licence for your model and a digital-security framework with incident reporting to Labuan FSA. We assemble the company, the licence and the substance as one file.
Malaysia's offshore centre with a real framework: Labuan FSA licenses DFS and exchanges under the Labuan FSSA.
The draw is 3% tax on international activity, an Asian base, and the right to serve the world - except Malaysia's own market.
The licence routes
The route follows the model.
Labuan FSA licenses digital financial services through a small number of routes. We pick the one that matches the business and build the file the Authority expects.
Two routes: money-broking with a DFS extension, or a Labuan exchange licence.
01 - DFS / MONEY-BROKING
Digital financial services
A money-broking licence with a digital-financial-services extension - the common route for brokers, token issuers, wallets and payment operators working with digital assets.
A money-broking licence with a digital-financial-services extension - the common route for brokers, token issuers, wallets and payment operators working with digital assets.
- ✓Money-broking with a DFS extension
- ✓Brokerage, wallet, payment models
- ✓Fit-and-proper and AML checks
02 - LABUAN EXCHANGE
Digital currency exchange
A Labuan exchange licence to operate a digital-currency exchange from Labuan IBFC - the route for a trading venue, with the higher standards a venue carries.
Real substance: resident secretary, AML officer, office. Incident reporting within 14 days.
- ✓Operate an exchange from Labuan
- ✓Higher capital and controls
- ✓Market and settlement standards
03 - SUBSTANCE AND SECURITY
Substance and cyber
Whichever route, Labuan expects real presence and real security - a resident company secretary, an AML officer, an office, local spend and incident reporting to the FSA.
Whichever route, Labuan expects real presence and real security - a resident company secretary, an AML officer, an office, local spend and incident reporting to the FSA.
- ✓Labuan-resident company secretary
- ✓AML officer and physical office
- ✓Incident reporting within 14 days
Labuan FSA sets minimum paid-up capital and application fees by model, with a full exchange at the higher end - confirmed for your case before any work begins. Substance is a real condition, not a formality.
Why Labuan
3% tax, Asian base, global reach.
A rare mix - a low real rate, a real regulator and the right to serve the world from an Asian offshore centre.
✓
3% on international activity
Labuan taxes trading and international activity at just 3% under the Labuan Business Activity Tax Act - one of the lowest real rates anywhere that still comes with a licence, not a grey zone.Low real rate with a real licence.
✓
Serve the world, not just Asia
A Labuan licence lets you offer services to clients worldwide - the single carve-out is Malaysia's own domestic market. The reach is global from an Asian seat.Serve the world, except Malaysia.
✓
A real regulator, offshore
Labuan FSA is a genuine authority with fit-and-proper and AML standards. The licence reads as a real authorisation, which is what banks and partners look for.Labuan FSA - fit-and-proper + AML.
✓
An Asian time zone and talent
Labuan sits in an Asian time zone with access to Malaysia's deep, multilingual talent pool - practical for building and running the business.Time zone and talent pool.
✓
A defined, quicker path
The routes are well-trodden and the process is relatively quick for a licensed regime - substance and security are the real work, and we do them properly.Well-trodden, relatively quick.
✓
The honest structure wins
Labuan FSA licenses on the file and the substance - the plan, the people, the AML and the security. We build all of it to the standard the Authority and correspondent banks read as legitimacy.Licensed on file and substance.
How it compares
How Labuan differs from other routes.
Labuan is the low-rate Asian offshore licence - 3% and global reach, with real substance. The honest comparison is below.
Labuan vs other jurisdictions
| Feature |  Labuan | Other jurisdictions |
|---|---|---|
| Model today | Labuan FSA DFS / exchange licence | From registration to full licensing |
| Tax | 3% on international activity | 0% offshore, or 9-30% onshore |
| Reach | Worldwide, except Malaysia | Varies |
| Substance | Resident secretary + office | From none to full teams |
Model today
LabuanLabuan FSA DFS / exchange licence
Other jurisdictionsFrom registration to full licensing
Tax
Labuan3% on international activity
Other jurisdictions0% offshore, or 9-30% onshore
Reach
LabuanWorldwide, except Malaysia
Other jurisdictionsVaries
Substance
LabuanResident secretary + office
Other jurisdictionsFrom none to full teams
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Labuan | DFS / exchange (Labuan FSA) | 3% international | Resident secretary + office, quick |
 Seychelles | VASP Act - four activities (FSA) | 1.5% local · territorial | Resident director + office, ~6 months |
 UAE (Dubai) | VARA VASP by activity | 9% CIT · 0% personal | Substance-heavy, 3-9 months |
 BVI | VASP registration by category (FSC) | 0% corporate | Authorised representative, ~4-6 months |
LabuanLicense typeDFS / exchange (Labuan FSA)
Taxation3% international
RequirementsResident secretary + office, quick
SeychellesLicense typeVASP Act - four activities (FSA)
Taxation1.5% local · territorial
RequirementsResident director + office, ~6 months
UAE (Dubai)License typeVARA VASP by activity
Taxation9% CIT · 0% personal
RequirementsSubstance-heavy, 3-9 months
BVILicense typeVASP registration by category (FSC)
Taxation0% corporate
RequirementsAuthorised representative, ~4-6 months
Doing it properly
What the Labuan FSA file contains.What the Labuan FSA file contains.
Labuan is offshore but real - the substance and security conditions are genuine. The checklist below is what we build and file.
01
Labuan company - incorporated with clean governance and ownership to the UBOs.
02
The right licence - a money-broking licence with a DFS extension, or a Labuan exchange licence.
03
Fit-and-proper directors, controllers and beneficial owners.
04
A business plan and an AML/CFT programme to Labuan standards.
05
A Labuan-resident company secretary responsible for compliance monitoring.
06
An AML officer responsible for the AML programme.
07
Substance - a physical office, local staffing and minimum annual operating expenditure.
08
Minimum paid-up capital for the model, set by Labuan FSA.
09
A digital-security framework, with breaches reported to Labuan FSA within 14 days.
10
Ongoing Labuan FSA reporting and supervision.
01
Labuan company.
02
DFS or exchange licence.
03
Fit-and-proper directors and UBOs.
04
Business plan + AML/CFT programme.
05
Labuan-resident company secretary.
06
AML officer.
07
Office, local staff, minimum spend.
08
Minimum paid-up capital by model.
09
Digital-security framework.
10
Incidents reported within 14 days.
Reflects the Labuan Financial Services and Securities Act and Labuan FSA digital-financial-services guidance as of 2026. The 3% rate applies to international activity under the Labuan Business Activity Tax Act.Labuan FSSA + Labuan FSA DFS guidance, as of 2026.
How it works
From first call to a Labuan FSA licence.
01
Strategy and route
DFS or exchange, the honest timeline and the substance plan - fixed in writing before anything incorporates.DFS or exchange - in writing.
02
The Labuan company
Incorporated with clean governance and ownership transparent to the UBOs.Labuan company, clean governance.
03
The Labuan FSA file
The licence application, the business plan, the capital and the AML programme.Licence, plan, capital, AML.
04
Substance and security
The resident secretary, AML officer, office and digital-security framework in place; accounts arranged on disclosure.Secretary, office, cyber; accounts.
05
Licence and run
Labuan FSA grants the licence; ongoing reporting and incident duties keep it clean.FSA grants; reporting keeps it clean.
Quick facts
RegulatorLabuan FSA
LawLabuan FSSA
ModelDFS / exchange licence
VehicleLabuan company
SubstanceResident secretary + office
Tax (international)3%
MarketWorldwide, except Malaysia
ReportingIncidents within 14 days
Labuan pairs a low real rate with a real licence - the substance and security are the work, the 3% and global reach are the reward.
On the ground for Labuan
Run from our Dubai desk, filed in Labuan.
Prifinance - Labuan desk
Run from our Dubai office
33 Level, Al Saqr Business Tower, Dubai, UAE
01
Labuan company
The vehicle the licence sits on - incorporated clean, owned transparently to the UBOs.The vehicle, built clean.
02
The Labuan FSA licence
The DFS or exchange route, the plan and the capital, assembled the way the Authority expects to read them.DFS or exchange route.
03
Substance and AML
The resident company secretary, the AML officer, the office and local spend - arranged so the substance is real.Secretary, officer, office.
04
Banking and rails
Accounts or a licensed payment provider, arranged on full disclosure with a real licence behind you.Arranged on full disclosure.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Good to know
Taxation of crypto companies in Labuan.
Not a zero, but close, and with a licence behind it - 3% on international activity, with the domestic-market rate reserved for Malaysian business.
3% on international activity
A Labuan entity's international trading activity is taxed at 3% of audited net profit under the Labuan Business Activity Tax Act - one of the lowest real rates paired with an actual licence.On audited net profit.
24% only for Malaysian business
The higher Malaysian rate applies only to activity in Malaysia's own domestic market - which the licence carves out anyway. Structured properly, the 3% is the working rate.Malaysian market, carved out.
Substance is the condition
The 3% depends on meeting Labuan's substance rules - the resident secretary, office and local spend the licence already requires. Built once, they carry the tax position too.Same the licence requires.
An Asian treaty position
Malaysia's treaty network can be relevant depending on the structure - we assess whether and how it applies to your flows.Assessed per structure.
No crypto-specific surtax
Digital-asset income follows the Labuan business-activity system - there is no separate crypto tax layer.General Labuan system.
Home-country tax still matters
A low Labuan rate does not switch off tax where owners live and manage. We flag the residence and controlled-company questions up front.Owners' residence still counts.
Tax summary
International activity3%
Malaysian-market activity24%
Crypto-specific taxNone - general system
ConditionSubstance requirements met
MarketWorldwide, except Malaysia
BasisLabuan Business Activity Tax Act
*As of 2026. The 3% depends on genuine substance - we build it and model your actual position.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the Labuan FSA file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: the Labuan company, the FSA licence file, the substance and AML/KYC policy set and the digital-security framework. His document sets are the reason reviews finish cleanly.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a clean, licensed business.
Follow Prifinance
Active across our channels.
Labuan · Labuan FSA
Launch your crypto project in Labuan with expert support.
Full-service setup - the company, the Labuan FSA licence and the substance, assembled as one.
Get a consultation →Free legal opinion
Is Labuan the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which route, jurisdiction or structure fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Labuan crypto licence, answered honestly.
Is Labuan a real regime?+
Yes - Labuan FSA licenses digital financial services under the Labuan Financial Services and Securities Act. It is offshore but supervised, with fit-and-proper, AML and substance requirements. Not a grey zone.
Which licence do I need?+
Usually a money-broking licence with a digital-financial-services extension, or a Labuan exchange licence for a trading venue. We match the route to what the business actually does.
How is it taxed?+
International activity is taxed at 3% under the Labuan Business Activity Tax Act; the 24% rate is reserved for Malaysian-market business, which the licence carves out. Structured properly, 3% is the working rate.
Can I serve clients everywhere?+
Worldwide, with one carve-out - Malaysia's own domestic market. For a globally-facing business, that is rarely a constraint.
What substance is required?+
Real substance - a Labuan-resident company secretary, an AML officer, a physical office and local operating expenditure. It is a genuine condition, and it also carries the 3% tax position.
What about security?+
Labuan expects a digital-security framework, and any breach or incident must be reported to Labuan FSA within fourteen days. We build the framework alongside the licence.
How long does it take?+
Relatively quick for a licensed regime once the file is complete - the substance and security build is the real work, not the calendar.
Why Labuan with you?+
Because the licence turns on the file and the substance - the plan, the people, the AML and the security. We build Labuan applications to the standard the Authority and the banks read, which is what makes the licence usable.
A real regime?+
Yes - Labuan FSA under the Labuan FSSA.
Which licence?+
Money-broking + DFS, or an exchange licence.
Tax?+
3% international; 24% only Malaysian market.
Serve everyone?+
Worldwide, except Malaysia's market.
Substance?+
Resident secretary, AML officer, office.
Security?+
Framework + incidents within 14 days.
How long?+
Quick for a licensed regime, once complete.
Why with us?+
File and substance to FSA and bank standard.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
Start today
One message away from your Labuan licence.
Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which route, jurisdiction or structure fits your business.Free legal opinion: which Labuan route fits your project and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right route, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of Labuan FSA or the Government of Malaysia. Licences are granted by, and obtained directly from, the competent authority.