Monaco moves to tighten crypto rules with MiCA-style licensing push Monaco has taken a major step to tighten its crypto regime, submitting Bill No. 1131 to the National Council on Aug. 6. The proposal would replace key elements of the principality’s 2022 crypto law and introduce a stricter, authorization-first licensing model for crypto-asset service providers — bringing Monaco’s framework closer to the EU’s Markets in Crypto-Assets (MiCA) Regulation and FATF standards. Why the change now The overhaul comes amid sustained international pressure on Monaco’s anti-money laundering and counter‑terrorist financing controls. The Financial Action Task Force (FATF) placed Monaco on its list of jurisdictions under increased monitoring in June 2024, and the European Commission classified Monaco as a high-risk third country in June 2025 (effective Aug. 5, 2025). Those designations increase compliance scrutiny for counterparties in the bloc and add operational friction for firms dealing with Monegasque entities. What Bill No. 1131 would do - Centralize authorization: Crypto-asset service providers would need prior approval from Monaco’s financial regulator, the Commission de Contrôle des Activités Financières (CCAF), before offering regulated services. - Define activities and standards: The bill sets out a clearer list of regulated crypto services and embeds corporate governance, prudential safeguards and professional conduct obligations into the statutory framework. - Broaden review processes: License applications would also be reviewed by the Autorité Monégasque de Sécurité Financière (for financial-security issues) and the Agence Monégasque de Sécurité Numérique (for cybersecurity). - Strengthen supervision and enforcement: Beyond licensing, the CCAF would gain expanded supervisory and enforcement powers to monitor providers on an ongoing basis. - Leave implementation details to follow: If adopted, the bill would establish the legal structure while technical and operational requirements would be set in secondary regulations issued afterward. How this differs from the 2022 law Law No. 1.528 (July 2022) had regulated digital-asset activity by splitting oversight depending on service types: issuance and certain operational activities required Minister of State approval, while investment services fell under the CCAF. It also required local presence for authorization and restricted foreign firms from soliciting residents via unsolicited marketing. Bill No. 1131 would consolidate authorization around the CCAF and standardize governance, financial and conduct rules across providers. A MiCA-inspired model Although Monaco is not an EU member, the proposed authorization-first approach mirrors MiCA’s model, under which crypto-asset service providers must be authorized and meet governance, client protection and prudential requirements before operating. The timing is notable: MiCA’s transitional arrangements ended on July 1, 2026, forcing crypto firms across Europe to seek formal authorization. Industry data shows a wide gap between the number of pre‑MiCA registered firms (over 3,000) and those already authorized (194 by May 2026), with estimates that roughly 75% of pre‑MiCA providers could lose previous registration status. Regulatory ripple effects in Europe MiCA’s roll-out has already shifted industry behavior: ESMA’s register reached 300 authorized firms on July 3, following a wave of approvals around the deadline that included names such as Standard Chartered and FalconX. Supervisors are moving beyond issuing licenses to active oversight — ESMA launched targeted reviews in July of MiCA-authorized custodians covering custody controls, key management, incident response and third-party risks. What’s next for Monaco If the National Council approves Bill No. 1131, Monaco will publish secondary regulations detailing licensing criteria, technical standards and operational obligations. The government frames the reform as a necessary step to strengthen compliance, reduce exposure to money laundering and align with international standards — while giving the CCAF the tools to supervise providers both at authorization and in ongoing operations. Bottom line Monaco’s draft law signals a clear pivot toward a MiCA-aligned, authorization-heavy model and tighter supervision — a pragmatic response to international pressure and a move likely to raise compliance expectations for crypto firms operating in or with the Principality. Read more AI-generated news on: undefined/news