- Malaysia Labuan FSA issues Fasset a provisional license for stablecoin-based Islamic digital banking.
- The site provides Shariah-compliant services such as zero-interest banking, deposits, and international remittances to 500,000 customers around the world.
Dubai-based fintech company Fasset has acquired regulatory clearance from Malaysia’s Labuan Financial Services Authority to establish a digital banking service combining Islamic finance principles with the help of stablecoins.
The provisional license allows the financial technology company to work within a controlled regulatory environment while developing Shariah-compliant products for underserved populations across Asia and Africa. This development represents a significant intersection between traditional Islamic banking requirements and emerging cryptocurrency infrastructure, potentially opening new pathways for faith-based financial services in the digital asset space.
Bridging Traditional Finance and Blockchain Innovation
The regulatory approval of Fasset enables the company to offer deposit services, international money transfer, and interest-free banking products that are in line with the Islamic law that outlaws riba or interest. The platform has a following of half a million users in 125 countries and offers services such as digital savings accounts, investment in American equities, precious metals, and cryptocurrency assets.
Chief Executive Mohammad Raafi Hossain highlighted the approach of the company to combine the traditional banking credibility with new fintech solutions that ensure the application of halal compliance in all operations.
The company has expansion strategies such as issuing cryptocurrency-backed debit cards and creating Own, an Ethereum-based layer-two network, which is powered by the Arbitrum technology to settle real-world assets transactions. Fasset has already obtained operational licenses in the United Arab Emirates, Indonesia, Turkey and territories of the European Union, which puts it in a position to expand its operations across the regions in various jurisdictions.
Labuan FSA license allows conducting business in the offshore financial centre in Malaysia, but is not equal to the full digital banking authorization provided by the central bank of Malaysia, Bank Negara. This regulatory framework provides Fasset with the opportunity to test innovative financial products and ensures the level of oversight and consumer protection that is necessary to conduct business and financial centre operations internationally.
The acceptance is positive as big financial players start to consider the integration of stablecoins, and Visa has recently tested cross-border payment systems based on the USDC and EURC tokens of Circle. Swift also declared the development of blockchain settlement platforms with Consensys and multiple financial institutions to provide the ability to process international payments in real-time.
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