Labuan FSA Tightens Oversight Of Digital Money Broking Activities
LABUAN, Sept 1 (Bernama) -- Labuan Financial Services Authority (Labuan FSA) has tightened regulatory requirements for digital money broking activities in the Labuan International Business and Financial Centre (Labuan IBFC) to strengthen market integrity and operational resilience.
Its director general, Affendi Rashdi, said the enhanced framework places greater emphasis on governance, compliance, technology and operational controls, particularly in addressing risks associated with digital financial activities.
He said the move aimed to ensure that innovation within Labuan IBFC develops alongside appropriate regulatory safeguards.
“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,” he said in a statement to Bernama today.
Labuan FSA first introduced a regulatory framework for digital currency trading in 2024, followed by tighter oversight of digital money broking platforms in 2025.
The latest enhancement forms part of the authority’s broader regulatory reforms covering digital governance, market supervision and electronic know-your-customer (e-KYC) requirements.
Affendi said clearer regulatory standards would give industry players greater certainty while ensuring that innovation does not compromise the integrity of the financial market.
“The message to the industry is simple: innovate, but innovate responsibly,” he said.
He said Labuan FSA would continue to strengthen prudential measures while supporting responsible digital innovation as part of efforts to position Labuan IBFC as a resilient and future-ready international financial centre.
-- BERNAMA