Monaco proposes new crypto-asset regulatory framework

The government of Monaco has submitted Bill No. 1131 to the National Council, proposing a comprehensive overhaul of the Principality’s cryptocurrency regulatory framework. The new legislation aims to replace the existing regime established in July 2022, which officials state has been rendered outdated by rapid shifts in the sector and the European legal landscape.

The proposed framework is designed to align Monaco’s rules with the European Union’s Markets in Crypto-Assets (MiCA) regulation and the standards set by the Financial Action Task Force (FATF). Under the new law, crypto-asset service providers would be required to obtain prior authorization from the Commission de Contrôle des Activités Financières (CCAF).

The bill expands the supervisory and enforcement powers of the CCAF and introduces stricter requirements regarding corporate governance, prudential rules, and professional conduct. This regulatory shift comes as Monaco seeks to address scrutiny regarding its anti-money laundering controls, as the Principality remains on the FATF grey list and is classified by the EU as a high-risk jurisdiction for money laundering and terrorist financing.