Labuan is an interesting test case for the FX industry. Some will argue it was not a go to jurisdiction to begin with. This argument is based on several regulatory measures imposed on the holders of the Money Broking licenses, which deterred many FX brokers from entering Labuan:

1. Licensee can act as broker only (no market making);
2. Products must include only currencies as underlying assets (no shares, commodities or indices);
3. Maximum permitted leverage of 1:100.
4. Relatively high capital requirement (approx. 120K USD).

Yet, despite the above, numerous brokers chose to establish their business in Labuan, stating the following reasons:

1. Good local banking solutions.
2. Affordable and competitive set up and maintenance costs.
3. A lenient regulator.
4. A jurisdiction not inflicted by the bad reputation of some of its players.

However, it looks like the money broking landscape in Labuan is set to change dramatically. The reason for this change is a guidance issued by the Labuan Financial Services Authority (LFSA) and addressed to Money Broking licensees.

The said guidance brought in two major restrictions (on top of those already in place):

1. Capital requirement to increase dramatically, literally doubling from the current rate.
2. Most of the clients’ portfolio (more than 50%) will have to include institutional investors and high net worth individuals, with retail clients accounting for less than 50% of the total clients’ portfolio.

There is no doubt the above measures will impact decision makers in currently licensed money broking firms to weigh their options.

Some of the options you may consider are:

1. Setting up from scratch or acquiring a licensed entity in another suitable and affordable jurisdiction such as Seychelles, Mauritius or Vanuatu to replace your Labuan entity.
2. If you are into crypto and digital assets – upgrading your current money broking to include a digital assets authorization form LFSA, or acquiring a money broking form with such permission.
3. Stay put – some may consider the relative advantages of Labuan to be good enough to stay there. Some brokers did chose to stay in Belize even after the capital requirements increased from 100K to 500K. Same might apply here.

¿Por qué elegir Clearsky Network?

Clearsky Network: su socio de confianza para el éxito empresarial, que combina experiencia jurídica de primer nivel con un profundo conocimiento del sector. Nuestra solución integral le ayuda en todas las fases de su proyecto, garantizando que se mantenga a la cabeza en un mercado en rápida evolución como el actual.

Cuando se asocia con Clearsky Network, desbloquea:

1. Asesoramiento jurídico especializado
   Desde el concepto hasta la ejecución, navegamos por las complejidades de la concesión de licencias multijurisdiccionales. Gestionamos las solicitudes, nos ponemos en contacto con los organismos reguladores, redactamos políticas y nos aseguramos de que cumpla la normativa en todo momento.
2. Soluciones de pago a medida
   Agilizamos sus operaciones financieras, ayudándole a establecer cuentas bancarias, a integrarse con proveedores de pagos y bolsas de criptomonedas, y a asegurar las soluciones de pago más adecuadas para su negocio.
3. Dominio del cumplimiento
   Mantenga su empresa en plena forma reglamentaria con nuestros servicios expertos en cumplimiento normativo. Desde la prestación de asesoramiento actualizado hasta la subcontratación de responsables de cumplimiento y soluciones de lucha contra el blanqueo de capitales, le dotamos de las herramientas y la formación necesarias para cumplir las normas mundiales.
4. Red mundial de profesionales
   Obtenga acceso a una red mundial de bufetes de abogados, contables y proveedores de servicios locales, garantizando que su negocio prospere en cualquier mercado, en cualquier parte del mundo.
5. Experiencia en el sector en la que puede confiar
   Benefíciese de nuestras amplias relaciones con el sector. Nuestras conexiones le dan acceso directo a los mejores proveedores de servicios, ayudándole a crecer de forma más rápida e inteligente aprovechando nuestra red establecida.

 Póngase en contacto con nosotros

Reach out to Clearsky Network to learn more about how we can assist you in securing your FX  license and expanding your business globally.