Monaco’s government has submitted a bill to replace its 2022 crypto regulatory regime with a new licensing framework that would place crypto-asset service providers under stricter authorization, governance and compliance requirements.
- Monaco has proposed a new crypto licensing framework aligned more closely with MiCA and FATF standards.
- Crypto service providers would need prior CCAF authorization and face stricter governance, prudential and conduct requirements.
- The bill would replace Monaco’s 2022 crypto regime and expand the CCAF’s supervisory and enforcement powers.
- Monaco remains on the FATF grey list and the EU’s list of high risk jurisdictions for money laundering.
The government’s Bill No. 1131 was formally submitted to Monaco’s National Council on Aug. 6, setting out a new framework designed to bring the Principality’s crypto rules closer to the European Union’s Markets in Crypto-Assets Regulation and standards developed by the Financial Action Task Force.
If adopted, the legislation would replace key parts of the system introduced under Law No. 1.528 in July 2022, while giving Monaco’s financial regulator a larger role in approving and supervising companies offering crypto services.
The proposal comes as Monaco remains subject to increased scrutiny over its anti-money laundering controls. The Financial Action Task Force continues to include the Principality among jurisdictions under increased monitoring, commonly known as the FATF grey list, while the European Union classifies Monaco as a high-risk third country for money laundering and terrorist financing controls.
Monaco crypto rules would move to a CCAF-led licensing system
Under the proposed framework, companies seeking to provide regulated crypto-asset services would need prior authorization from the Commission de Contrôle des Activités Financières, or CCAF.
The bill more precisely sets out the crypto services that can be provided in Monaco and adds requirements covering corporate governance, prudential safeguards and professional conduct. Companies would therefore face regulatory checks not only on the services they intend to offer but also on how their businesses are organized and operated.
Before a license can be issued, applications would also undergo reviews involving two other Monegasque authorities, according to a local report. The Autorité Monégasque de Sécurité Financière would assess relevant financial-security matters, while the Agence Monégasque de Sécurité Numérique would participate in the review of cybersecurity requirements.
Alongside its authorization role, the CCAF would receive additional supervisory and enforcement powers under the bill. Monaco’s government has tied the additional controls to efforts to strengthen compliance and reduce exposure to money laundering and other illicit financial activity.
The model would bring Monaco closer to the authorization-based approach used under MiCA, even though the Principality is not a European Union member state. Under the EU framework, crypto-asset service providers must obtain authorization before providing regulated services and comply with requirements covering governance, client protection, prudential controls and conduct.
The licensing component has become particularly important since MiCA’s transitional arrangements ended this summer. As previously covered by crypto.news, the EU transition period ended on July 1, leaving crypto firms subject to the bloc’s full Crypto-Asset Service Provider licensing requirements.
The bill would replace Monaco’s two-track crypto regime
Monaco’s existing rules date to Law No. 1.528, adopted in July 2022 to regulate companies providing services involving digital assets and crypto assets.
Rather than placing all regulated crypto services under one authorization structure, the law separated providers according to their activities. Companies involved in digital or crypto-asset issuance and certain operational services needed approval from the Minister of State, while businesses providing investment services involving crypto assets fell under the CCAF.
The 2022 law also established local presence requirements. A company seeking authorization had to establish a registered business in Monaco before providing covered services.
Foreign providers faced restrictions as well. Companies operating outside Monaco were prohibited from approaching residents through unsolicited marketing, limiting the ability of overseas crypto businesses to actively seek Monegasque customers without meeting the Principality’s requirements.
Bill No. 1131 would reorganize that structure around a more clearly defined list of regulated crypto services and a CCAF authorization process. The proposed rules would also put governance, financial safeguards and conduct obligations directly into the regulatory framework governing providers.
Comparable requirements have already become central to licensing across the EU. By late June, MiCA licensing data showed that more than 3,000 crypto businesses had been registered across Europe before the new regime, while only 194 had secured authorization by May 2026. Hogan Lovells estimated that roughly 75% of the pre-MiCA provider base could lose its previous registration status as transitional arrangements expired.
MiCA licensing has raised compliance requirements across Europe
The regulatory model Monaco is seeking to follow has already changed how crypto companies operate across neighboring European markets.
MiCA allows an authorized Crypto-Asset Service Provider to operate across EU member states through a single regulatory framework. Companies must satisfy licensing requirements before offering covered services, while regulators can examine their governance, operational controls and ability to meet continuing compliance obligations.
After the EU transition period ended, the European Securities and Markets Authority’s register showed a further increase in approved firms. On July 3, ESMA’s register reached 300, after 57 additional crypto providers were added around the July 1 deadline. Standard Chartered and FalconX were among companies receiving authorization that allowed them to use MiCA passporting rights across the bloc.
Regulatory attention has since moved beyond granting licenses. In July, ESMA started a supervisory review of selected MiCA-authorized crypto custodians, examining areas including custody controls, management of cryptographic keys, incident response procedures and risks linked to third-party service providers.
For Monaco, Bill No. 1131 would similarly give the CCAF additional tools to supervise providers after authorization rather than limiting regulatory involvement to the initial licensing decision.
If the National Council approves the legislation, Monaco would subsequently issue secondary regulations covering the practical and technical requirements companies must follow. The bill therefore establishes the statutory structure, while detailed implementation standards would be set separately.
FATF scrutiny has added pressure on Monaco’s financial rules
The proposed overhaul also arrives while Monaco remains under international monitoring over weaknesses in its anti-money laundering and counter-terrorist financing framework.
FATF placed Monaco on its list of jurisdictions under increased monitoring in June 2024. A grey-list designation means a jurisdiction has committed to address identified strategic deficiencies within agreed deadlines while remaining subject to increased FATF monitoring.
As of February 2026, FATF continued to list Monaco alongside jurisdictions including Algeria, Angola, Kenya, Lebanon, Namibia, Nepal and Venezuela.
The European Commission subsequently added Monaco to its own list of high-risk third countries. The Commission adopted the change in June 2025, and Monaco’s designation entered into force on Aug. 5, 2025.
Under the EU anti-money laundering framework, entities covered by the bloc’s rules are required to apply enhanced vigilance to transactions involving jurisdictions on the high-risk list. The European Commission said its assessment took account of FATF’s work and the jurisdictions identified as being under increased monitoring.
Such additional checks can increase the compliance work involved in transactions connected to listed jurisdictions, potentially adding time and costs for financial institutions dealing with counterparties in those markets.
Monaco’s government has presented the stronger supervision and authorization requirements in Bill No. 1131 as part of its effort to reinforce regulatory compliance and prevent money laundering and other illicit financial activity. Detailed technical and operational requirements for crypto businesses would be established through implementing regulations after the National Council approves the statutory framework.
