Monaco seeks to tighten crypto oversight with new licensing bill

The proposed legislation shifts regulatory authority to the Commission de Contrôle des Activités Financières (CCAF), which would gain expanded enforcement powers. Under the new structure, firms seeking to offer crypto services must secure prior authorization, undergoing a multi-agency review process. This includes financial security assessments by the Autorité Monégasque de Sécurité Financière and cybersecurity audits by the Agence Monégasque de Sécurité Numérique.

This transition replaces the bifurcated system established under Law No. 1.528, which previously split oversight between the Minister of State and the CCAF depending on the nature of the activity. Beyond simple licensing, the new bill mandates strict corporate governance, prudential safeguards, and professional conduct protocols. These measures mirror the European Union’s Markets in Crypto-Assets (MiCA) regulation, which emphasizes ongoing compliance and operational transparency over the initial approval process.

Monaco’s push for reform is framed as a strategic response to international pressure. The Principality currently remains on the FATF grey list for deficiencies in anti-money laundering and counter-terrorist financing controls. By adopting this stringent oversight model, the government intends to demonstrate a commitment to mitigating illicit financial risks. While the bill provides the statutory foundation, specific technical requirements will be defined through secondary regulations following approval by the National Council.