MiCA: Monaco tightens its crypto regulations and moves closer to the European framework

The Moncao government 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 supports an overhaul of the obligations imposed on crypto-asset service providers. The project also strengthens controls and compliance requirements, meeting the expectations of the FATF and the European Commission.

Monaco wants to align its regulations 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, the FATF. The text must explicitly replace Law No. 1.528adopted in July 2022. This first regulation separated activities according to 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 control of the Financial Activities Control Commission. Companies wishing to obtain a license also had to create a company registered in Monaco. Furthermore, foreign companies could not approach residents with unsolicited advertisements.

Stricter conditions for crypto providers

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

According to a local press articlethe allocation of licenses would require a joint examination by the Monegasque Financial Security Authority and the Monegasque Digital Security Agency. The CCAF would also have expanded powers in terms of surveillance and control. The authorities present this strengthening as a way to improve compliance with the rules and prevent money laundering. The future system must then specify the practical and technical requirements applicable to businesses.

Monaco strengthens its system in the face of international expectations

This reform comes more than a year after theinclusion of Monaco on the list of countries at high risk of money laundering of the European Commission. The Principality has also been on the FATF gray list since the summer of 2024. In this context, the alignment with MiCA is part of a broader evolution of the Monegasque regulatory framework. The project also intends to meet international standards for the control of financial activities. This orientation must also clarify the responsibilities of the actors, strengthen the traceability of operations and give the authorities additional means to monitor the activities of the Monegasque financial sector.

Being listed on the EU list may result in transaction delays and increased costs. In the longer term, it could also weigh on sovereign and corporate credit ratings. Borrowing costs for local institutions could then increase 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 towards more structured regulation of crypto-assets. The bill must now continue its journey before the National Council. Its adoption would pave the way for regulations detailing the obligations applicable to service providers. The Principality is thus seeking to strengthen its control while bringing its MiCA framework closer to European and international standards.