How to apply for Malaysian digital currency license applied by Huobi Exchange

Malaysia in2018After updating the legal framework and adopting cryptocurrency regulatory rules,. According to them, exchanges, traders, and organizations that convert non statutory funds are referred to as "reporting agents". The control of this field has been handed over to the National Central Bank (Bank Negara Malaysia) and the main regulatory body, the Securities Commission. It must beICOStandardize relationships within the framework and issue licenses for exchanging cryptocurrencies.

The scope of license regulation in Malaysia includes:foreign exchangeDigital currency issuance, asset management,LFSAThe currency brokerage license provided is different from other licenses, and this license is the only one in Asia that supports only direct mode（STP）The license issued by the business (please refer to the foreign exchange merchant's "A country in Asia blocks all foreign exchange broker websites" for details). Brokers who obtain this license can only operate order matching business and are not allowed to become counterparties to any orders.

What are the eligibility criteria for application?

1.Password exchanges licensed from other jurisdictions or password users; at least1-2Years of experience in reliable trade business;

2.The minimum financial proof is20Ten thousand dollars. Paid-in capital50Ten thousand ringgit.(about12.5USD 10000)。

3.The director team should have at least2Years of experience.

Required documents for Malaysia's digital currency application

1Two sets of notarized copies of passports for all directors and shareholders

2Two sets of notarized address certificates for all directors and shareholders. It can be a water, electricity, coal bill or a bank deposit certificate

3Bank recommendation letter

4Lawyer/auditor/Recommendation letter from the notary office

5Confirmation letter of a shareholder's bank deposit- Indicate the minimum in the documentMYR 500000 (approx. $123 000 USD)

6The above documents need to be scanned and sent for preliminary review

7After the review is completed, the original documents need to be sent by express delivery

8、KYCDocument application requirements

Application Requirements
1. Submit the complete application formLFB-MBAt the end of each fiscal year6Submit a copy of the audited financial statement within one month, in accordance withFSARequest submission of data and information reports;
2. The minimum capital shall not be lower than50Ten thousand ringgit or other equivalent amount in foreign currency;
3. Labuan FSAWe will also consider the risk prediction of the applying legal entity, the nature, scale, complexity, and diversity of the enterprise activities;
4. Request the legal entity to establish a physical office in Labuan equipped with office equipment and used for commercial business purposes;
5. The controller, supervisor, and chief executive officer of the company must meet the applicability requirements;
6. Establish a suitable internal control system within the company to oversee business operations, compliance, corporate governance, and risk management;
7. Ensure that the main broker or liquidity provider of the company (currency broker) is a compliant and regulated institution;
8. Having an external auditor certified by Labuan for annual financial auditing and reportingFSAreport
9. Keep transaction records and account records, keep monthly customer fund records, and do not misappropriate customer funds;
10. number/The system must haveITtechnical support;
11. Conduct due diligence on clients, disclose counterparty risk levels to clients, clarify financial instrument pricing, and ensure the establishment of risk buffering mechanisms such as stop loss orders

That's all for a brief introduction to Malaysia's digital currency license. If you want to learn more, you can follow me——Xiaochun