Key Takeaways
- Monaco submitted Bill No. 1131 on Aug. 6 to replace Law No. 1.528 and reform crypto rules.
- The CCAF will enforce MiCA and FATF standards following Monaco’s 2024 grey-listing.
- National Council approval of Bill No. 1131 will trigger secondary technical rules for providers.
Evolving Beyond the 2022 Framework
Monaco’s government has submitted a bill to its legislature to overhaul the Principality’s legal framework for crypto‑asset service providers, citing rapid growth in the digital finance sector and shifting international standards. Bill No. 1131 was formally submitted to the National Council on Aug. 6. If approved, it would replace the regime enacted in 2022 and align Monaco’s regulations more closely with the European Union’s Markets in Crypto‑Assets Regulation (MiCA) and standards set by the Financial Action Task Force (FATF).
Under Law No. 1.528, passed in July 2022, crypto‑asset and digital‑asset services were divided into two regulatory tracks based on activity. Asset issuance and operational services required approval from the State Minister, while investment services involving crypto assets required authorization from the Commission de Contrôle des Activités Financières (CCAF).
The regime also required service providers seeking licenses to establish a registered company in Monaco, and foreign firms were explicitly prohibited from soliciting Monegasque residents through unsolicited marketing.
The new legislation more clearly defines which crypto‑asset services may legally operate in Monaco and introduces stricter operational requirements covering corporate governance, prudential safeguards and professional‑conduct standards. Under the proposed rules, providers must obtain prior authorization from the CCAF.
According to a local report, licenses would only be granted after joint reviews by the Autorité Monégasque de Sécurité Financière and the Agence Monégasque de Sécurité Numérique. The measure also expands the CCAF’s supervisory and enforcement powers. Government officials said the enhanced oversight aims to strengthen regulatory compliance and prevent money laundering and other illicit financial activity.
If approved by the National Council, the statutory framework will be followed by secondary implementing regulations detailing practical and technical requirements for businesses.
Monaco’s move to refine its cryptocurrency regulations comes more than a year after it was added to the European Commission’s list of high‑risk countries for money laundering. In addition, the Principality has been on the FATF grey list since the summer of 2024.
Inclusion on the European Commission’s high‑risk list can lead to transaction delays and higher costs. Over time, the designation may result in sovereign and corporate credit rating downgrades, raising borrowing costs for local institutions on international capital markets.