Monaco Proposes New Crypto Regulations Aligning with MiCA Standards

Monaco’s Government Advocates for Stricter Crypto Regulations

On August 6, 2026, the government of Monaco submitted Bill No. 1131, aiming to replace its existing 2022 regulatory framework for crypto with a stringent licensing model. The proposed changes seek to align more closely with the European Union’s Markets in Crypto-Assets Regulation (MiCA) and guidelines set forth by the Financial Action Task Force (FATF).

Enhanced Licensing Framework

If adopted, the new framework would impose stricter requirements on crypto-asset service providers, necessitating prior authorization from the Commission de Contrôle des Activités Financières (CCAF). This comprehensive regulatory overhaul seeks to enhance governance, prudential standards, and compliance obligations for all crypto operations in Monaco.

A Response to International Scrutiny

Monaco’s regulatory shift comes amid ongoing scrutiny regarding its anti-money laundering (AML) measures. The Principality is currently included on the FATF grey list, signifying an obligation to address identified deficiencies in its financial regulations. Additionally, it is classified by the European Union as a high-risk jurisdiction for money laundering and terrorist financing.

Key Features of the Proposed Legislation

• Regulatory Framework: The new bill aims to replace the two-track approach set forth by the previously adopted Law No. 1.528 from July 2022. This earlier law subdivided regulatory oversight based on the nature of the crypto services.
• Role of CCAF: The CCAF would play a more pronounced role in approving and supervising crypto firms, thereby increasing its authority to enforce compliance.
• Inter-Agency Review Process: Applications for licenses would now require evaluations not only from the CCAF but also from the Autorité Monégasque de Sécurité Financière and the Agence Monégasque de Sécurité Numérique, enhancing the thoroughness of financial and cybersecurity assessments.

Context of Changes

Since the conclusion of MiCA’s transitional period on July 1, 2026, many crypto firms in the EU have been required to meet heightened compliance standards. The legislative proposal seeks to bring Monaco’s regulations in line with these new norms, ensuring that the Principality remains a competitive yet responsible player in the crypto landscape.

Future Steps Following Legislative Approval

Should the National Council approve Bill No. 1131, secondary regulations will be established to detail the specific operational and technical requirements for crypto companies. This structured approach aims to fortify Monaco’s regulatory environment, potentially easing concerns regarding money laundering and other financial crimes.

Conclusion

The proposed adjustments in Monaco’s crypto regulations underscore the government’s commitment to enhancing compliance with international standards. As the global landscape of cryptocurrency evolves, these changes may position Monaco more favorably as a secure jurisdiction for crypto-asset services.