Monaco MiCA, officially Bill No. 1131, was submitted by the government to its National Council on August 6, 2026, to align crypto rules with EU standards. 1131 to its National Council on August 6, 2026.
This legislative proposal marks a significant overhaul of the principality’s digital asset regulatory framework, aiming to align Monaco’s crypto rules with the European Union’s Markets in Crypto-Assets Regulation (MiCA) and stringent standards from the Financial Action Task Force (FATF).
The action represents a determined effort to address Monaco’s persistent presence on international financial watchlists. The bill seeks to replace the existing Law No. 1.528 from July 2022.
Monaco’s regulatory shift towards MiCA
Officials say the previous law has been "overtaken by successive changes to the European legal framework." This strategic pivot is largely driven by a desire to remove Monaco from the FATF grey list and the European Commission’s list of high-risk jurisdictions for money laundering.
The core of Bill No. 1131 involves replacing key parts of Monaco’s 2022 crypto law. The previous legislation created a two-tiered system for digital asset services. It featured separate authorizations depending on the activity.
Issuance and certain operational services required approval from the Minister of State. Crypto-linked investment services, however, fell under the Commission de Contrôle des Activités Financières (CCAF). This dual approach proved less efficient with evolving market dynamics.
The new proposal streamlines this approach, introducing a unified, MiCA-aligned licensing regime. Any firm offering crypto-asset services in Monaco will now need prior authorization from the CCAF.
This authorization follows a joint review process. It involves both the Autorité Monégasque de Sécurité Financière (AMSF) and the Agence Monégasque de Sécurité Numérique (AMSN). This signals a more robust vetting process for market entrants.
The bill precisely defines the crypto services permitted within Monaco. It also mandates clear rules for company operations, risk management, and professional conduct. Crucially, the CCAF gains expanded supervisory and enforcement powers.
This measure is designed to bolster defenses against money laundering and other financial crimes. It reflects Monaco’s serious commitment to international compliance.
Driving factors: escaping financial watchlists
Monaco’s push for regulatory harmonization isn’t just about modernizing its legal framework. It’s a direct and calculated response to significant international pressure.
The principality has been on the FATF grey list since the summer of 2024. This designation flags countries with strategic deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks.
Compounding this, the European Commission added Monaco to its list of high-risk third countries for money laundering controls over a year ago. These classifications bring tangible economic consequences.
They can lead to slower international transactions and increased compliance costs for local businesses. Moreover, they can even result in higher borrowing costs, stifling economic activity.
Shedding these designations is a primary impetus behind Bill No. 1131. By closely mirroring MiCA and FATF standards, Monaco aims to demonstrate its commitment to financial integrity.
This could pave the way for its removal from these damaging international lists. It’s a crucial step for the principality’s global financial standing.
Monaco has already been working to address these concerns. In June 2026, the FATF made an initial determination that Monaco had substantially completed its action plan. This progress, including six specific reforms, paved the way for an on-site assessment.
Despite these steps, the FATF had emphasized in February 2026 that all deadlines for compliance had expired and further work was needed. Bill No. 1131 reinforces Monaco’s dedication to meeting these international requirements.
The comprehensive reach of MiCA and its implications
The European Union’s Markets in Crypto-Assets Regulation (MiCA) fully came into force across the bloc in 2026. It’s a sweeping legal framework designed to standardize rules for crypto-assets. MiCA aims to enhance market integrity, financial stability, and consumer protection.
MiCA covers a broad spectrum of crypto-assets, including asset-referenced tokens (ARTs) and e-money tokens (EMTs). It also regulates various crypto-asset service providers (CASPs) like exchanges and wallet providers.
Under MiCA, CASPs secure authorization from a national supervisor in one EU country. This then grants them "passporting rights" to operate across all 27 member states. This is a critical mechanism for market access within the EU.
Despite the comprehensive nature of MiCA, authorization has proven challenging for many. By May 2026, only 194 of over 3,000 crypto businesses registered across Europe before the new regime had secured MiCA authorization.
This indicates the high bar for compliance and the potential for market consolidation. It shows the full impact of the regulation is still unfolding across the continent.
For Monaco, embracing a MiCA-aligned framework signals its intention to more seamlessly integrate with the broader European digital asset ecosystem. This strategic alignment could attract legitimate crypto businesses seeking a well-regulated environment. This move contrasts with previous regulatory uncertainties.
Key provisions and oversight entities
- Bill No. 1131: The legislative proposal for this regulatory overhaul.
- National Council: Monaco’s legislature, responsible for reviewing and potentially approving Bill No. 1131.
- Law No. 1.528: The existing 2022 law that Bill No. 1131 is intended to replace.
- European Union’s Markets in Crypto-Assets Regulation (MiCA): The comprehensive framework Monaco aims to align its crypto rules with.
- Financial Action Task Force (FATF) standards: International guidelines for anti-money laundering and counter-terrorist financing that Monaco also seeks to meet.
- Commission de Contrôle des Activités Financières (CCAF): The financial regulator in Monaco, set to gain expanded supervisory and enforcement powers over crypto service providers.
- Autorité Monégasque de Sécurité Financière: One of the bodies involved in the joint review of licenses for crypto service providers under the new bill.
- Agence Monégasque de Sécurité Numérique: The other body involved in the joint review of licenses for crypto service providers.
- European Commission: The body that has listed Monaco as a high-risk jurisdiction for money laundering, a status Monaco aims to shed.
What’s next for Monaco’s crypto landscape
The path forward for Bill No. 1131 involves deliberation by Monaco’s National Council. The bill’s specific wording could still undergo changes during this legislative process. If adopted, further implementing texts will detail the practical application of these new rules.
Monaco’s ultimate aim remains its removal from both the FATF grey list and the EU’s high-risk money laundering list. The FATF had already determined in June 2026 that Monaco substantially completed its action plan. This set the stage for an on-site assessment and potential delisting.
This new bill is designed to reinforce that progress. It sends a clear message to international bodies regarding Monaco’s commitment to compliance.
The anticipated impact on Monaco’s crypto-asset service providers will be significant. The transition demands stricter governance, robust prudential safeguards, and enhanced professional conduct.
This could lead to a strategic consolidation within the Monegasque crypto market. This trend echoes wider European developments as MiCA’s full enforcement takes hold.
Experts predict MiCA’s full enforcement will likely reduce the number of participants in the EU crypto market by 2028. This highlights the transformative power of comprehensive regulation.
Monaco’s commitment extends beyond this current bill. The Principality plans its next National Risk Assessment for 2026–2027, followed by a new National Strategy. These steps underscore a long-term vision to meet and exceed global financial standards.
This regulatory overhaul isn’t just an update. It’s a strategic re-positioning of Monaco within the global digital finance arena.