01 September 2026 - Labuan Financial Services Authority (Labuan FSA) has further strengthened the regulatory framework governing the digital money broking activities in the Labuan International Business and Financial Centre (Labuan IBFC). The enhanced measures reflect Labuan FSA’s continued focus on market integrity, operational resilience and responsible innovation, building on regulatory reforms of recent years entailing digital governance, market oversight and electronic know-your-customer (e-KYC) requirements.
“Digitalisation is changing how financial services are delivered – and regulation must keep pace. Our goal is to enable innovation within Labuan IBFC, but with the right safeguards to keep the market resilient and trusted," said Affendi Rashdi, Director General of Labuan FSA.
Labuan FSA introduced its regulatory framework for digital currency trading in 2024 to support safer and more transparent activities within Labuan IBFC. This was followed by enhanced oversight of digital money broking platforms in 2025, further strengthening the standards applicable to money brokers facilitating digital currency trading. The enhanced framework provides greater regulatory clarity, with stronger expectations on governance, compliance, technology and operational controls to address risks arising from digital operations.
Affendi added, “The message to the industry is simple: Innovate but innovate responsibly. Stronger standards give business greater clarity to grow, while protecting the integrity of the market. We will continue to ensure Labuan IBFC is progressively future-ready by advancing innovation with prudential measures together.”
Through these measures, Labuan FSA would continue to promote a more resilient, transparent and trusted money broking ecosystem, while providing room for responsible digital innovation to grow.
Labuan Financial Services Authority
01 September 2026
