Monaco’s government has formally submitted Bill No. 1131 to the National Council, proposing a comprehensive legislative overhaul to replace its existing 2022 digital asset framework. The proposed legislation introduces a centralized licensing regime for crypto-asset service providers that closely mirrors the European Union’s Markets in Crypto-Assets (MiCA) regulation and aligns with Financial Action Task Force (FATF) anti-money laundering standards.
If enacted, the bill will dismantle the two-track regulatory system established under Law No. 1.528 in July 2022. That previous framework split oversight between the Minister of State for digital asset issuances and the Commission de Contrôle des Activités Financières (CCAF) for investment-related services. Under the new statutory structure, the CCAF will serve as the primary supervisory authority, overseeing a unified authorization process for all regulated crypto activity within the Principality.
Centralized CCAF Licensing and Inter-Agency Oversight
The new legislation requires all entities offering digital asset services in Monaco to secure prior authorization from the CCAF. Beyond reviewing service offerings, the CCAF will evaluate corporate governance, prudential reserves, and professional conduct standards. This brings structural organization and operational resilience directly into the regulatory mandate, ensuring that crypto firms meet stringent corporate benchmarks.
The authorization procedure will incorporate specialized multi-agency reviews before a license is granted. Financial security risks will be evaluated by the Autorité Monégasque de Sécurité Financière, while cybersecurity controls and infrastructure will be reviewed by the Agence Monégasque de Sécurité Numérique. In addition to initial approvals, the bill grants the CCAF expanded supervisory and enforcement powers to monitor ongoing compliance, key management, and operational risks after authorization.
Although Monaco is not an EU member state, the proposal aligns its domestic regulations with the authorization-based approach codified under MiCA. Following the expiration of EU transitional arrangements on July 1, European regulators have fully enforced Crypto-Asset Service Provider licensing requirements. By adopting a similar structure, Monaco aims to establish regulatory parity with European standards and modernize its domestic crypto ecosystem.
Addressing Global Anti-Money Laundering Scrutiny
The legislative push arrives as Monaco faces heightened international pressure regarding its financial controls. In June 2024, the FATF placed the Principality on its grey list of jurisdictions subject to increased monitoring due to strategic deficiencies in anti-money laundering and counter-terrorist financing measures. Subsequently, the European Commission added Monaco to its list of high-risk third countries in mid-2025, triggering enhanced due diligence requirements for European financial institutions conducting cross-border transactions involving Monegasque entities.
Monaco’s government has framed Bill No. 1131 as a pivotal step toward remediating these deficiencies and strengthening financial integrity. By establishing clear legal definitions for digital asset services, enforcing strict capital requirements, and empowering the CCAF with robust enforcement mechanisms, the Principality seeks to curtail illicit financial flows and satisfy international regulatory expectations.
Following prospective approval by the National Council, Monaco’s government will issue secondary implementing regulations to detail specific technical standards, capital thresholds, and operational rules for market participants.
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