Monaco's government has submitted Bill No. 1131 to replace its 2022 crypto regulatory regime with a new licensing framework that would place crypto-asset service providers under stricter authorization, governance and compliance requirements. According to reports from crypto.news and ChainCatcher, the bill was formally submitted to Monaco's National Council on August 6, 2026, setting out a new framework designed to bring the Principality's crypto rules closer to the European Union's Markets in Crypto-Assets Regulation and standards developed by the Financial Action Task Force. The government frames this reform as part of a wider effort to keep Monegasque law current while holding to what it calls the highest level of financial security and compliance, as the 2022 law had become overtaken by successive changes to the European legal framework. The move reflects how quickly the sector, and the law around it, has shifted, with the government presenting the reform as an attempt to give firms looking to offer crypto-asset services in the Principality a clear, demanding and secure set of rules that meets international standards while reflecting the particular character of the Monegasque model, rather than importing the EU regime wholesale.
Under the proposed framework, companies seeking to provide regulated crypto-asset services would need prior authorization from the Committee for the Regulation of Financial Activities (CCAF). As reported by crypto.news and ChainCatcher, the bill more precisely sets out the crypto services that can be provided in Monaco and adds requirements covering corporate governance, prudential safeguards and professional conduct. Firms wanting to operate would first have to obtain authorisation from the CCAF, granted after opinions from the Monegasque Financial Security Authority (AMSF) and the Monegasque Digital Security Agency (AMSN). Before a license can be issued, applications would undergo reviews involving these two other Monegasque authorities - the AMSF would assess relevant financial-security matters, while the AMSN would participate in cybersecurity requirement reviews. The bill broadens the CCAF's role and powers accordingly, so that it can police the new framework and guard against unlawful practices. The measure also expands the CCAF's supervisory and enforcement powers, with government officials stating the enhanced oversight aims to strengthen regulatory compliance and prevent money laundering and other illicit financial activity. According to local reports, licenses would only be granted after joint reviews by the Autorité Monégasque de Sécurité Financière and the Agence Monégasque de Sécurité Numérique.
The proposed overhaul arrives while Monaco remains under international monitoring over weaknesses in its anti-money laundering and counter-terrorist financing framework. According to crypto.news and ChainCatcher, FATF placed Monaco on its list of jurisdictions under increased monitoring in June 2024, with the grey-list designation meaning the jurisdiction has committed to address identified strategic deficiencies within agreed deadlines while remaining subject to increased FATF monitoring. The European Commission subsequently added Monaco to its own list of high-risk third countries in June 2025, with Monaco's designation entering into force on August 5, 2025. Inclusion on the European Commission's high-risk list can lead to transaction delays and higher costs, with the designation potentially resulting in sovereign and corporate credit rating downgrades, raising borrowing costs for local institutions on international capital markets. The Principality has been on the FATF grey list since the summer of 2024, adding another layer of international scrutiny to its financial sector operations. Under EU AML rules, entities subject to the framework must apply enhanced due diligence to transactions involving high-risk jurisdictions, such as Monaco, which can increase the compliance burden, time and costs associated with transactions involving counterparties in jurisdictions subject to heightened scrutiny.
The regulatory model Monaco is seeking to follow has already changed how crypto companies operate across neighboring European markets. As reported by crypto.news and ChainCatcher, MiCA allows an authorized Crypto-Asset Service Provider to operate across EU member states through a single regulatory framework, with companies must satisfying licensing requirements before offering covered services. The bill draws on the EU's Markets in Crypto-Assets regulation, known as MiCA, whose own rules for service providers came fully into force across the bloc in 2026, and it takes account of the standards set by the Financial Action Task Force (FATF), the global anti-money-laundering body. According to data from the European Securities and Markets Authority (ESMA), the number of authorized firms increased sharply around the end of the transitional period, reaching approximately 300 companies by July 3, after 57 additional crypto providers were added around the deadline. Among the firms receiving licenses that allow them to benefit from MiCA passporting rights are Standard Chartered and FalconX. The text spells out precisely which crypto-asset services may be carried out in the Principality — a deliberate choice, the government says, aimed at protecting the integrity, stability and standing of Monaco's financial centre while still allowing activities that fit its economy to develop. Monaco's alignment with MiCA standards is strategic rather than mandatory, as the principality is not an EU member, but closer regulatory compatibility could improve its standing with institutional digital asset firms operating across European markets.
If the National Council approves the legislation, Monaco would subsequently issue secondary regulations covering the practical and technical requirements companies must follow. According to crypto.news and ChainCatcher, the bill therefore establishes the statutory structure, while detailed implementation standards would be set separately. The government presents the stronger supervision and authorization requirements as part of its effort to reinforce regulatory compliance and prevent money laundering and other illicit financial activity, with the text spelling out precisely which crypto-asset services may be carried out in the Principality to protect the integrity, stability and standing of Monaco's financial centre. The proposed legislation represents more than an update to Monaco's existing crypto rules. It signals an attempt to reposition the principality within Europe's increasingly regulated digital asset landscape. As MiCA raises regulatory standards across the continent and international scrutiny of AML controls intensifies, stronger licensing requirements could help Monaco attract institutional-quality digital asset businesses and financial firms. The challenge will be finding the right balance. For Monaco, a more rigorous framework could strengthen market credibility and regulatory alignment. But if compliance requirements become too burdensome, the principality could also risk pushing digital asset companies toward jurisdictions offering greater flexibility. The outcome of Bill No. 1131 could therefore play an important role in determining whether Monaco becomes a more credible destination for regulated digital asset businesses or a more restrictive market within Europe's evolving crypto landscape.
