The total number of digital financial services operating in Labuan under the licensed of the Labuan FSA has grown to 111 as reported in the jurisdiction’s Market Report 2022.
Digital financial services include digital-banking, insurtech business to digital intermediaries such as Robo-advisors, digital asset exchanges, crypto trading platforms, blockchain tokens as well as e-payment systems.
Read up FinTech Magazine highlights on Labuan International Business and Financial Centre (Labuan IBFC)’s on its positioning as Malaysia’s premier digital financial hub.
Article by Financial Services (FinServ)
Editor Bizclik Admin
August 01, 2023
Labuan IBFC is located in the Federal Territory of Labuan, off the coast of Borneo.
Labuan International Business and Financial Centre (Labuan IBFC) on its positioning as Malaysia’s premier digital financial hub.
Labuan International Business and Financial Centre (Labuan IBFC) was established by the Malaysian government in 1990. The centre is governed by a single regulator, Labuan Financial Services Authority (Labuan FSA) which comes under the purview of Malaysia’s Ministry of Finance. Meanwhile, Labuan IBFC Incorporated Sdn Bhd (Labuan IBFC Inc.), a wholly owned subsidiary of Labuan FSA, acts as the official marketing agency for the centre. Strategically located in Asia Pacific, Labuan IBFC is well positioned to tap into one of the fastest-growing regions in the world, with the centre’s tagline being ‘Asia’s premier international financial hub’.
Labuan IBFC offers a wide range of business structures and investment solutions to facilitate cross-border transactions and international business dealings carried out by global investors and businesses. Our key service areas include banking, insurance, wealth management, businesses related to the capital markets, leasing, money broking and commodity trading, with our suite of solutions available in conventional, Shariah-compliant and digital forms.
Digital financial services (DFS) in Labuan IBFC encompass a wide array of financial offerings ranging from simple e-platforms for trading fiat and digital currencies to the more complex digital asset exchanges including the issuance and subscription of RAMZ or Islamic digital tokens and fundraising for blockchain-based tokenisation. Given that the centre has positioned itself as a hub for digital innovation since 2017, the DFS sector in Labuan IBFC has continuously experienced rapid growth, recording an expansion of 22% in 2022. The Centre’s DFS community currently has 111 providers.
In Labuan IBFC, the digital ecosystem comprises three main pillars:
- Digital financial institutions – digital banks and insurtech providers
- Digital service providers – digital tokens and asset issuance, digital currency trading platforms, digital asset management and digital securities dealers
- Digital platforms – payment portals and digital securities exchanges
Read more from FinTech Magazine