Monaco has submitted a draft law that would overhaul its existing crypto regime and bring it closer to the European Union’s Markets in Crypto-Assets Regulation, or MiCA, as well as standards set by the Financial Action Task Force. Bill No. 1131 was formally filed with the National Council on Aug. 6.
If the bill is adopted, it would replace the framework introduced in 2022 and reshape how crypto-asset businesses can operate in the principality. Officials have presented the changes as a compliance-focused update designed to tighten oversight and reduce money-laundering and other illicit-finance risks.
A shift away from the 2022 system
Monaco’s current framework is based on Law No. 1.528, which split crypto-asset and digital-asset activities into two regulatory categories depending on the service being offered. Under that approach, asset issuance and operational services required approval from the State Minister, while investment services tied to crypto assets fell under authorization by the Commission de Contrôle des Activités Financières, or CCAF.
The 2022 rules also required firms seeking licenses to establish a registered company in Monaco. Foreign firms were specifically barred from targeting Monegasque residents through unsolicited marketing, setting an early boundary around cross-border promotion of crypto services.
What the draft bill would change
Bill No. 1131 would replace that two-track structure with a framework that more clearly defines which crypto-asset services may legally operate in Monaco. The proposal also introduces tougher operating obligations, including requirements related to corporate governance, prudential safeguards and professional conduct.
A central change is that crypto-asset service providers would need prior authorization from the CCAF. That would make the financial regulator the main gatekeeper for firms seeking to offer covered services in the jurisdiction under the proposed regime.
Broader review and stronger supervision
The draft law would also add a multi-agency review process for licensing. According to the proposal, authorizations would be granted only after joint assessments by the Autorité Monégasque de Sécurité Financière and the Agence Monégasque de Sécurité Numérique.
Beyond the approval stage, the measure would expand the CCAF’s supervisory and enforcement powers. Government officials said the broader oversight is intended to strengthen regulatory compliance and help prevent money laundering and other forms of illicit financial activity.
What happens next
The bill now goes to Monaco’s National Council, which will decide whether to approve the proposed statutory changes. At this stage, the new regime is still a draft and would only take effect if it passes the legislative process.
If lawmakers approve Bill No. 1131, the statutory framework would then be followed by secondary implementing regulations. Those later rules are expected to set out the practical and technical requirements that businesses would need to meet under the revised system.
Source: news.bitcoin.com