The principality of Monaco has moved to advance its regulatory structure for digital assets by submitting Bill No. 1131 to its National Council. This new legislative proposal is designed to strengthen the licensing process for crypto service providers, introduce stricter governance and compliance standards, and align the nation’s approach more closely with the European Union’s Markets in Crypto-Assets (MiCA) regulation and Financial Action Task Force (FATF) guidelines.
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AAPLCentralized oversight under CCAF
The draft legislation sets out a centralized supervisory system through the Commission de Contrôle des Activités Financières (CCAF), Monaco’s financial regulatory authority. All crypto-asset service providers would now face mandatory pre-authorization from the CCAF before commencing operations. This change brings together Monaco’s existing divided approval process into a single, consolidated licensing regime for regulated digital asset entities.
Under the proposed system, applicants would be evaluated not only by CCAF but also by the Autorité Monégasque de Sécurité Financière, which will review financial security and operational models. The Agence Monégasque de Sécurité Numérique will assess cybersecurity measures and digital protection protocols that prospective license holders must implement to ensure robust operational security.
The legislation further grants CCAF authority for ongoing supervision and enforcement of licensed crypto service providers, rather than focusing solely on entry approvals. Monaco’s government officials expect that these changes will elevate compliance standards and reduce risks of financial crime, including money laundering and fraud.
Mini dictionary: Commission de Contrôle des Activités Financières (CCAF) is Monaco’s financial regulator, responsible for regulatory oversight of financial and digital asset service providers within the principality.
CCAF will conduct ongoing monitoring of licensed firms, aiming to reinforce regulatory compliance and to help protect Monaco’s finance sector against illicit activity.
Bringing regulations into line with European and global standards
Bill No. 1131 closely mirrors the European Union’s MiCA regulatory framework, which sets broad standards for crypto service licensing, organizational governance, consumer protections, and prudential requirements. Although Monaco is not part of the EU, the proposed law would establish national rules similar to those required by MiCA.
This move comes amid elevated international scrutiny of Monaco’s efforts to prevent money laundering and terrorist financing. The FATF currently subjects Monaco to enhanced monitoring, known as grey-listing. The European Union has also categorized Monaco as a high-risk jurisdiction for anti-money laundering controls.
Mini dictionary: Markets in Crypto-Assets (MiCA) is an EU regulation that establishes a harmonized legal framework for crypto-assets and service providers across the European Union, setting requirements on licensing, consumer protection, and financial stability.
Monaco’s adoption of MiCA-like standards is expected to address international recommendations and support the country’s move towards a stronger anti-money laundering regime.
| Jurisdiction | Framework | Regulatory Authority | EU Member |
|---|---|---|---|
| Monaco | Bill No. 1131 (MiCA-aligned) | CCAF | No |
| European Union | MiCA | National Regulators/ESMA | Yes |
Streamlining Monaco’s dual licensing scheme
Monaco’s 2022 digital asset law established different licensing requirements depending on the type of services offered, with some companies needing approval directly from government ministers and others from the CCAF. Bill No. 1131 aims to unify this dual-track approach, bringing all crypto-asset service providers under a standardized process and set of requirements for authorization.
The bill further clarifies which crypto-asset services are permitted within Monaco, linking licensing eligibility to organizational governance, financial controls, risk management, cybersecurity compliance, and professional conduct. Licensed companies will be subject to expanded obligations in both their internal structures and the services they offer.
If the law is approved by the National Council, Monaco’s government will later issue specific implementation rules detailing licensing, supervision, and compliance obligations under the new framework. Officials believe these reforms will support continuous regulatory oversight aimed at maintaining the country’s reputation in international finance.
