Monaco Submits Cryptocurrency Bill Aligned with MiCA
The Monaco government submitted Bill No. 1131 to the National Council, aiming to replace the 2022 cryptocurrency regulations and establish a regulatory system aligned with the EU MiCA framework and FATF standards.
The bill requires cryptocurrency asset service providers to obtain prior authorization from the Financial Activities Control Authority (CCAF), with licenses subject to joint review by the Financial Security Authority and the Digital Security Agency.
The new framework clearly defines the types of cryptocurrency services that can be conducted in Monaco, enhances corporate governance, prudential safeguards, and professional conduct requirements, and expands the CCAF's supervisory and enforcement powers.
This move aims to respond to the rapid development of the industry while addressing the pressure of Monaco being placed on the FATF gray list and the EU's list of high-risk money laundering countries starting in 2024.
If approved, Monaco will further develop supporting implementation rules to create a clear, strict, and internationally compliant legal environment.
The bill was officially submitted on August 6, reflecting the principality's alignment with European regulations while maintaining its own model.
In the market aspect, the regulatory upgrade raises compliance thresholds, directing funds towards service providers with complete authorization and governance capabilities, benefiting compliant institutions while putting pressure on existing operators without authorization.
Source: Public Information
ABAB AI Insight
Monaco's 2022 legislation categorized cryptocurrency services into two tracks: issuance and operation. This unification under prior CCAF authorization directly responds to the pressure of the FATF gray list and the EU's high-risk designation, continuing the path of attracting compliant capital through regulatory alignment for small countries.
In terms of capital flow, the government aims to concentrate resources on enterprises that comply with MiCA-style governance by raising entry and supervision standards, directing funds and licenses towards highly compliant entities, with the goal of reducing money laundering risks and solidifying its status as a financial center.
Similar cases can be seen in other non-EU jurisdictions proactively aligning with MiCA for cross-border recognition, currently transitioning from loose pilot programs to strict unified regulation.
This essentially represents a regulatory change: international standards are forcing a reconstruction of the domestic framework, with entry thresholds becoming the core mechanism for screening compliant participants.
ABAB News · Cognitive Law
The gray list pressure is a direct driver of regulatory upgrades.
Prior authorization is more effective in controlling risks than post-regulation.
Aligning with major market standards is a shortcut for small countries to attract capital.