LABUAN CREDIT TOKEN COMPANY

A Labuan credit token company is a financial institution licensed under Section 90 of the Labuan Financial Services and Securities Act 2010 (LFSSA) or Section 65 of the Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA) to undertake credit token business. This involves issuing a token (cheque, card, voucher, coupon, digital token, or other instrument) which allows the holder to obtain cash, goods, or services on credit, either from the issuer or a third party, with repayment due to the issuer. Tokens can be issued in digital or non-digital form and are classified as non-securities tokens (not deemed securities under LFSSA/LIFSSA).

BENEFITS

Tax Efficiency : – 3% tax on audited net profits subject to fulfilment of the substance requirements.
Innovation : – Ability to issue both physical and digital tokens, including blockchain-based non-securities tokens.
Global credibility : – Operates under Labuan FSA’s regulated framework.
Flexibility : – Tokens may be backed by fiat currency, real-world assets, or other recognized forms of value.
Shariah-compliant option : – May be structured as Islamic credit token business with Shariah adviser approval.

SAMPLE USE CASE

A fintech company establishes a Labuan credit token company to issue digital tokens backed by fiat currency. Customers can use these tokens via an app to pay for goods and services across ASEAN, with repayment due monthly. The issuer settles directly with merchants while earning transaction fees. For investors, the structure offers tax efficiency, regulatory clarity, and cross-border scalability.

Head Office

Unit Level 11(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000 FT Labuan, Malaysia

Marketing Office

19A-25-1, Business Suite, UOA Centre, No.19, Jalan Pinang, 50450 FT Kuala Lumpur, Malaysia

For General Inquiries

[email protected]

For Marketing Inquiries