---
type: free_zone
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "southeast_asia", "fatf", "crypto_friendly"]
aliases: ["MY-LABUAN2", "MYS-LB2", "Labuan"]
created: 2026-04-13
updated: 2026-04-02
compile_into: ["[[country--malaysia]]"]
sources:
  - name: "Labuan FSA"
    url: "https://www.labuanfsa.gov.my"
    type: "official"
  - name: "Labuan Financial Services and Securities Act"
    url: "https://www.labuanfsa.gov.my"
    type: "framework"
---

# 🇲🇾 Labuan IBFC (Malaysia) (MY-LABUAN2) — Crypto Regulation

> Labuan IBFC operates under the Labuan Financial Services Authority which promotes a secure and competitive environment for international trade and finance, ensuring compliance with global standards and fostering innovation. The jurisdiction is recognized as a crypto-friendly international financial centre with a focus on transparency and financial stability.

## Overview

| Field | Value |
|-------|-------|
| Status | crypto_friendly |
| Sub-jurisdiction of | [[country--malaysia|Malaysia]] |
| Risk Score | 15/100 (Low Risk) |
| Enforcement Level | Low |
| Region | [[domain--asia-pacific|southeast asia]] |
| Currency | [[entity--myr|MYR]] |

## Tax

| Type | Rate |
|------|------|
| VAT on Crypto | No |

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--labuan-fsa|Labuan FSA]] |
| Framework | Labuan Financial Services and Securities Act |
| Ease | medium |
| Cost | N/A |
| Timeline | N/A months |

Licensing is regulated by Labuan FSA under the Labuan Financial Services and Securities Act, requiring compliance with international standards.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | No |
| FATF Status | fsrb_only |

## DeFi

**Status:** regulated

DeFi activities are regulated under Labuan FSA's framework ensuring compliance with AML and financial regulations.

## Stablecoins

**Status:** regulated

Stablecoins are regulated within the Labuan IBFC under the Labuan Financial Services Authority's oversight.

## NFTs

**Status:** no_rules

No specific NFT regulation; generally permitted

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.1/kWh |
| Renewable Energy | 18% |
| Climate | tropical |
| Infrastructure | good |

Mining is legal with moderate electricity costs and good infrastructure. The tropical climate may increase cooling costs.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 53/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | moderate |

## Enforcement

No significant enforcement actions reported; jurisdiction actively encourages crypto business

## CBDC Status: exploring

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [Labuan FSA](https://www.labuanfsa.gov.my)
- [Labuan Financial Services and Securities Act](https://www.labuanfsa.gov.my)