LABUAN, Oct 10 (Bernama) -- The Labuan Financial Services Authority (Labuan FSA) has granted conditional approvals to Green Digital Bank Corp and Fasset Islamic Digital Bank Ltd to operate as Islamic digital banks within the Labuan International Business and Financial Centre (Labuan IBFC).
In a statement to Bernama today, Labuan FSA said the approvals, issued in 2025, were granted under the Guidelines on the Establishment of Labuan Islamic Digital Bank under Sandbox Regulatory Requirements (iBOX) and Section 63 of the Labuan Islamic Financial Services and Securities Act 2010.
“These approvals enable both entities to carry out Islamic digital banking business in Labuan IBFC once all regulatory conditions are met,” the statement said.
Labuan FSA introduced the Digital Financial Sandbox in 2024 as part of the initiatives under the Islamic Digital Asset Centre (IDAC), launched in 2022 to attract more digital asset and fintech players to Labuan IBFC and strengthen its position in the digital Islamic finance.
The regulator emphasised that under the conditional approvals, both entities are not permitted to commence business operations until they have fulfilled all operational and prudential requirements stipulated by the authority.
These mandatory prerequisites act as key safeguards to ensure readiness, sound governance, and full regulatory compliance before the issuance of a provisional licence and the transition into the operational phase.
The issuance of these conditional approvals marks a significant milestone in advancing Labuan IBFC’s digital finance agenda and fostering the development of innovative financial solutions.
Labuan FSA will maintain close oversight to ensure all Sandbox participants adhere to the required standards before progressing to full operations.
This measured approach reflects Labuan FSA’s commitment to facilitating innovation while ensuring market stability and consumer protection.
--BERNAMA
