LABUAN IBFC'S TOOL BOX
Key Takeaways
- The ethos of Digital Labuan is that there are no "sandboxes"; instead existing "legacy" licenses are used to facilitate digital players via the concept of a "digital wrapper".
- A "digital wrapper" or a digital business plan simply means the element of technology, which will be utilised is embedded into the business plan of each proposed licensed entity, and the Regulator i.e. Labuan Financial Services Authority (Labuan FSA) will assess each applicant based on merit.
- It is worth noting that licenses may be combined in order to achieve the operational objective of a potential digital license holder. For example, the digital currency trading platform coupled with the digital token/asset issuance license provides for an entity to not only issue a token, but also create a cryptocurrency exchange to trade this token.
- A collaborative and facilitative approach by Labuan FSA ensures for the option of a pre-submission consultation and discussion directly with the Regulator. Once a submission to be licensed is submitted, each licensee's commercial proposition is expected to be articulated and an understanding of the digital element in the operations should be clearly defined.
- This industry-friendly bespoke approach coupled with Labuan IBFC's tax, legal and currency neutrality, and ideal location in the center of Asia as well as cost efficiencies create an ideal base for borderless digital entities.
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