The global digital revolution is deepening and enhancing efficiencies in financial systems. By broadening access to financial services, it enhances economic development and promotes a more inclusive growth model, which is especially pertinent in emerging economies in Asia.
These are all good reasons for Labuan IBFC to be a key facilitator of Asia’s digital finance movement. In general, currently digital finance can be divided into four sectors:-
a. Payments and currencies (crypto-currencies, currency exchanges, mobile money and payment apps);
b. Software and Applications (any new process designed to improve back and middle office processes);
c. Platforms (crowdfunding, fund raising, secondary trading);
d. Data/analytics (technology which gathers and analyses data to produce information to improve businesses).
Thus far, the following types of licences have been issued:-
a. Crypto currency exchange platforms;
b. FinTech funds;
c. Digital token issuance; and
d. Digital securities exchanges focused on using blockchain technology to democratise access to capital markets, be it primary or secondary.
The jurisdiction has a forward-thinking regulatory approach and Fintech friendly existing legal structures and licenses, which has been vital in cementing our standing as a successful FinTech jurisdiction.
Benefits of setting up FinTech business in Labuan IBFC
a. Existing digital friendly license toolbox
b. Well-regulated and respected jurisdiction
c. Expertise in delivering cross-border financial services
d. Strong, open, pragmatic proportional regulatory regime
e. Business friendly facilitative environment
f. Asian time zone and connectivity
g. Ability to create Economic Substance
h. Commitment to digital innovation
i. Currency and Tax neutral operating environment
j. Ease of doing business with cost-effective solutions and structures
k. Access to skilled talent
l. Options for Shariah compliant FinTech