Monaco Tightens Crypto Oversight with New Licensing Bill

Monaco has introduced a new licensing bill aimed at tightening its crypto regulations. Bill No. 1131, submitted to the National Council on August 6, would replace parts of the existing framework and introduce stricter authorization, governance, prudential, and compliance requirements for crypto-asset service providers.

The proposed legislation would bring Monaco closer to the European Union's MiCA model while incorporating key FATF regulatory standards. Under the bill, crypto-asset service providers would need prior authorization from the Commission de Contrôle des Activités Financières (CCAF), which would assess governance arrangements, prudential safeguards, and professional conduct before granting approval.

The CCAF would also work with two other authorities, the Autorité Monégasque de Sécurité Financière and the Agence Monégasque de Sécurité Numérique, to review applications. The new system would simplify Monaco's existing two-track structure and strengthen ongoing oversight after authorization.

The government says the framework should improve compliance standards and reduce exposure to money laundering and other illicit financial activity. If approved, the bill would issue implementing regulations covering licensing procedures, supervision, compliance obligations, and operational requirements for providers.