Monaco’s government has submitted Bill No. 1131 to the National Council in a bid to repeal its 2022 digital assets legislation and introduce a modernized framework for crypto-asset service providers. The proposal, filed in early August 2026, draws on the European Union’s Markets in Crypto-Assets Regulation, known as MiCA, along with Financial Action Task Force standards, while adapting them to the principality’s own system.

Shift from Fragmented Oversight to Centralized Licensing

Under the existing Law No. 1.528 of July 7, 2022, crypto activities were divided into two categories. Issuance and operational services fell under the authority of the State Minister, while investment-related services required approval from the Commission de Contrôle des Activités Financières, or CCAF. Providers also had to incorporate locally, and foreign firms were prohibited from directly marketing to Monaco residents.

Bill No. 1131 would eliminate that dual structure. All firms seeking to offer crypto-asset services would need prior authorization from the CCAF as the single licensing body. Before that approval, applications would undergo review by the Autorité Monégasque de Sécurité Financière and the Agence Monégasque de Sécurité Numérique. These checks are designed to verify financial soundness and digital security standards.

The draft text specifies the precise activities permitted in Monaco and sets clear requirements for operational conduct, risk management and professional standards. It also expands the CCAF’s powers to include continuous monitoring, sanctions and intervention in cases of non-compliance, with a stated focus on preventing money laundering and related financial crimes.

International Pressure and Economic Stakes

The legislative push follows Monaco’s placement on the Financial Action Task Force grey list since the summer of 2024 and its earlier designation by the European Commission as a high-risk jurisdiction for money laundering. Authorities have noted that such listings produce concrete economic effects, including slower international transactions, higher compliance costs and increased borrowing expenses for local businesses.

Although Monaco is not a member of the European Union, the bill is structured to bring local rules into closer alignment with MiCA’s licensing, governance and consumer-protection requirements. Officials expect that successful implementation could support efforts to leave the high-risk lists and improve access to global financial markets.

Blockchain analytics firm TRM Labs has reported that crypto service providers without MiCA authorization tend to show significantly higher levels of severe risk exposure. Across the European Economic Area, only 281 of 1,343 active crypto firms have so far obtained MiCA authorization, illustrating the limited uptake of the regime to date.

Next Steps and Implementation

If the National Council adopts Bill No. 1131, the government plans to issue detailed secondary rules covering licensing procedures, ongoing supervision and compliance obligations. The measures are intended to raise overall standards while positioning Monaco as a jurisdiction that meets international expectations for digital asset activity.