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Monaco tightens the grip on crypto and prepares a new framework inspired by MiCA

Publisher Cointribune 3 min de leitura

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The government of Monaco presented bill no. 1131 to the National Council on August 6. This reform aims to replace the framework adopted in 2022 and bring the Principality closer to European standards. At the heart of the text, MiCA accompanies a revision of the obligations imposed on crypto-asset service providers. The project also strengthens controls and compliance requirements in response to the expectations of the FATF and the European Commission.

In brief

Monaco is preparing new crypto regulation to replace its framework adopted in 2022.
The project brings the Principality closer to MiCA and the international FATF standards.
Crypto providers will have to meet stricter requirements and obtain prior authorization.
The reform also aims to strengthen controls against money laundering and illicit activities.

Monaco wants to align its regulation with MiCA

Bill no. 1131 provides a new legal basis for service providers related to crypto-assets. Monaco thus wishes to bring its system closer to the European MiCA regulation and the standards of the Financial Action Task Force, FATF. The text explicitly replaces law no. 1.528, adopted in July 2022. This initial regulation separated activities by their nature and imposed several levels of authorization.

At that time, the issuance of assets and operational services required the approval of the minister of state. Investment services involving crypto-assets fell under the Financial Activities Control Commission. Companies wishing to obtain a license also had to establish a company registered in Monaco. Moreover, foreign companies were not allowed to solicit residents through unsolicited advertisements.

Stricter conditions for crypto providers

The new text more explicitly defines the services that can be legally performed in the Principality. It also introduces strengthened requirements concerning governance, prudential protections, and professional ethics. From now on, providers will have to obtain prior authorization from the CCAF. This development further brings the Monegasque framework closer to MiCA, while strengthening the role of the local regulator.

According to a local press article, license issuance would require a joint review by the Monegasque Financial Security Authority and the Monegasque Digital Security Agency. The CCAF would also have expanded powers in supervision and control. Authorities present this strengthening as a way to improve rule compliance and prevent money laundering. The future system must then specify the practical and technical requirements applicable to companies.

Monaco strengthens its system in response to international expectations

This reform comes more than a year after Monaco was added to the European Commission’s list of high-risk money laundering countries. The principality is also on the FATF grey list since summer 2024. In this context, alignment with MiCA is part of a broader evolution of the Monegasque regulatory framework. The project also aims to meet international standards in financial activity controls. This approach should clarify actors’ responsibilities, strengthen transaction traceability, and give authorities additional means to monitor the activities of the Monegasque financial sector.

Being on the European list can cause transaction delays and increased costs. In the longer term, it could also affect sovereign credit ratings and those of companies. Local institutions’ borrowing costs might then rise on international markets. If the National Council adopts the text, implementing regulations will then specify the practical and technical requirements, while MiCA will remain a central reference.

Monaco is now moving toward a more structured regulation of crypto-assets. The bill must now continue its progress before the National Council. Its adoption would pave the way for regulations detailing obligations applicable to providers. The Principality thus seeks to strengthen its control while bringing its framework closer to MiCA and European and international standards.

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Journaliste et rédacteur web passionné par l’univers des cryptomonnaies et des technologies Web3. J’y traite les dernières tendances et actualités afin de proposer un contenu de haute qualité à un large public du secteur.

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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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