Labuan Money Broking License + Digital Finance Authorization (for VASP / Spot / Derivatives Crypto) – Application Services by Zitadelle AG

Launch Your Forex, Derivatives and Digital Finance Brokerage in Labuan, Malaysia

Labuan, a Federal Territory of Malaysia, is internationally recognized as a strategic financial hub, offering favorable tax treatment and a business-friendly regulatory environment. It is particularly attractive for firms involved in forex trading, derivatives, and money broking under a Labuan Money Broking License.

Zitadelle AG provides full-service support for companies applying for a Labuan Money Broking License, ensuring compliance with the latest 2025 regulatory updates from the Labuan Financial Services Authority (LFSA).

Why Choose Labuan for Your Brokerage?

• Flexible regulatory framework ideal for forex and derivative businesses

• Low taxation: 3% on net profits, 0% on capital gains and offshore instruments

• Confidential ownership: No public register for shareholders or directors

• Access to Malaysian banks, including Maybank, for multi-currency support

• Islamic banking services available for Shariah-compliant operations

License Overview: Labuan Money Broking License

This license is designed for businesses engaged in foreign exchange and derivative broking activities, including CFDs on currency pairs and on virtual currency pairs (BTC, USDT, ETH, other) .

⚠️ 2025 Regulatory Update:
Labuan Money Brokers may only offer currency pairs and derivatives based on currency and virtual currency pairs.
CFDs on other underlying assets are now restricted.
Virtual currencies (Bitcoin, Ethereum, etc.) are permitted but with 1:1 leverage.

Eligibility & Key Requirements

Corporate Setup

• Incorporate a Labuan company

• Appoint minimum two directors (natural persons with financial experience)

• Maintain an office and employ at least two local staff

• Appoint a Resident Secretary in Labuan

Experience Criteria

• Shareholders (corporate entities) and directors must demonstrate:

  • Minimum 3–5 years of regulated financial services experience (forex, securities, derivatives)

  • A verified financial track record over at least three years

  • Clear commitment to establishing operations in Labuan

Capital Requirements (2025)

📌 2025 Capital Updates:

• Brokers must increase paid-up capital by 50% within one year of license issuance.

• Maintain an additional 20% reserve fund to cover potential capital shortfalls.

Leverage & Client Restrictions (2025 Guidelines)

• FX/Derivatives Leverage Limit: Max 100:1 (1% minimum margin)

• Digital Assets Leverage: Max 1:1 (no leverage)

• Retail Client Cap: Retail investors must form less than 50% of total clientele

• Target Clients: Focus on institutional investors and high-net-worth individuals (HNWI with >USD 150K annual income or >USD 1M net assets)

Application Process with Zitadelle AG

1. Company Incorporation and local infrastructure setup

2. Document Preparation & KYC:

   • Director CVs, education, passport copies

   • Bank and professional reference letters

   • Proof of funds and address

3. LFSA Interview Support:

   • Coaching for regulatory interview

   • Local representative present during interview

4. Bank Account Setup:

   • Support for Malaysian bank accounts (e.g., Maybank)

   • Average processing time: 3–7 weeks

   • Physical visit required for some banks

Ongoing Compliance & Reporting

• Annual audited financial statements (by a Labuan-licensed audit firm)

• Maintain minimum local expenditure of USD 35,000/year

• Annual license renewal fee: ~USD 1,500

Estimated Timeline

• License Application & Setup: 3 to 7 months

• Bank Account Opening: 3 to 7 weeks

Why Zitadelle AG?

Zitadelle AG specializes in licensing services for financial institutions across Asia and Europe. With deep expertise in Labuan regulatory requirements, our team ensures seamless navigation of licensing, compliance, and banking procedures. From company formation to license issuance, we act as your end-to-end advisor and local liaison.

Ready to Launch Your Labuan Forex/ CFD/ Virtual Asset Brokerage?

Contact Zitadelle AG today to schedule a free consultation. Whether you are a startup, established broker, or fintech innovator, we provide tailor-made solutions to secure your Labuan Money Broking License with full regulatory compliance.