TLDR
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Monaco proposes stricter crypto licensing under new MiCA-style legislation.
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Bill No. 1131 would place crypto providers under stronger CCAF supervision.
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Monaco plans tougher governance and compliance rules for crypto companies.
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New crypto rules would replace Monaco’s existing two-track approval system.
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Monaco’s crypto reform seeks closer alignment with MiCA and FATF standards.
Monaco has moved to tighten crypto oversight through a new licensing bill submitted to the National Council on August 6. Bill No. 1131 would replace parts of the 2022 framework and introduce stricter authorization, governance, prudential, and compliance requirements. The proposal also brings Monaco closer to the European Union’s MiCA model while incorporating key FATF regulatory standards.
Monaco Sets CCAF-Led Crypto Licensing Framework
Under the bill, crypto-asset service providers would need prior authorization from the Commission de Contrôle des Activités Financières. The CCAF would assess proposed services, governance arrangements, prudential safeguards, and professional conduct before granting regulatory approval. This approach would replace Monaco’s current split structure with a more centralized licensing process covering regulated crypto businesses and services.
Applications would also involve reviews by two other authorities before the CCAF makes a final licensing decision. The Autorité Monégasque de Sécurité Financière would examine financial-security matters linked to applicants and their planned business operations. The Agence Monégasque de Sécurité Numérique would assess cybersecurity controls and other digital security requirements affecting licensed providers.
The bill would also expand the CCAF’s supervisory and enforcement powers over authorized crypto-asset service providers. As a result, Monaco would strengthen ongoing oversight after authorization instead of concentrating regulatory controls mainly on market entry. The government says the framework should improve compliance standards and reduce exposure to money laundering and other illicit financial activity.
Monaco Aligns Crypto Rules With MiCA and FATF Standards
The proposed system would bring Monaco closer to the authorization model used across the European Union under MiCA. MiCA requires regulated crypto providers to meet rules covering governance, client protection, prudential controls, and professional business conduct. However, Monaco remains outside the European Union and would apply its own national framework under the proposed legislation.
The reform also arrives while Monaco faces stronger international scrutiny over anti-money laundering controls and financial supervision. FATF continues to place the Principality under increased monitoring, commonly known as the organization’s grey list. The European Union also classifies Monaco as a high-risk third country for money laundering and terrorist financing controls.
Monaco adopted Law No. 1.528 in July 2022 to regulate businesses providing services involving digital assets and crypto assets. That law separated providers by activity, with some companies requiring direct approval from the Minister of State. Investment-related crypto services instead fell under the CCAF, creating the two-track structure that Bill No. 1131 would replace.
New Rules Would Replace Monaco’s Existing Two-Track System
The existing framework assigns different approval routes depending on the type of crypto service that a company provides. Consequently, some operators fall under ministerial approval, while businesses offering investment-related services already face oversight from the CCAF. Bill No. 1131 would simplify that structure by placing regulated crypto services under a clearer authorization system.
The proposed legislation also defines the crypto-asset services that companies could legally provide within Monaco. It would link authorization to governance quality, financial safeguards, operational controls, cybersecurity standards, and professional conduct requirements. Therefore, licensed companies would face broader obligations covering both their internal structures and their treatment of regulated activities.
If the National Council approves the bill, Monaco would issue implementing regulations covering how the new requirements operate. Those measures would provide further details on licensing procedures, supervision, compliance obligations, and other operational requirements for providers. The resulting framework would give Monaco a stricter crypto regime built around authorization, oversight, financial security, and regulatory accountability.
