The Labuan Financial Services Authority (Labuan FSA) has granted conditional approvals to Green Digital Bank Corp. and Fasset Islamic Digital Bank Limited to operate as Islamic digital banks within the Labuan International Business and Financial Centre (Labuan IBFC). The approvals were issued 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. Both entities are not permitted to commence business operations until they fully satisfy Labuan FSA’s operational and prudential requirements. Labuan FSA framed these prerequisites as safeguards to ensure readiness, sound governance and regulatory compliance ahead of the issuance of a provisional licence and any transition into the operational phase. The conditional approvals sit within Labuan FSA’s Digital Financial Sandbox, introduced in 2024 under the Islamic Digital Asset Centre (IDAC) initiative launched in 2022. Labuan FSA indicated it will maintain close oversight of sandbox participants’ adherence to required standards before any move to full operational stages.
Labuan Financial Services Authority 2025-10-10
Labuan Financial Services Authority grants conditional approvals to Green Digital Bank Corp and Fasset Islamic Digital Bank to operate as Islamic digital banks in Labuan IBFC
Labuan Financial Services Authority conditionally approved Green Digital Bank Corp. and Fasset Islamic Digital Bank Limited to operate as Islamic digital banks in Labuan IBFC. Approvals follow the Guidelines on the Establishment of Labuan Islamic Digital Bank and Section 63 of the Labuan Islamic Financial Services and Securities Act 2010. Both must meet operational and prudential requirements before starting, with Labuan FSA ensuring compliance via its Digital Financial Sandbox.