Monaco
Retail_Trading_Status
- Analysis ID
- #730
- Version
- Latest
- Created
- 2025-12-12 04:53
- Run
- 63289c18...
- History
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- Workflow Stage
- Step 1
Executive Summary
Cryptocurrency activities in Monaco are legal and strictly regulated under a dedicated legislative framework established in 2020 and expanded in 2022. Retail trading is permitted, and the Principality has attracted high-profile crypto usage, such as the acceptance of crypto payments by the state-linked Société des Bains de Mer via the Lyzi solution. Service providers (CASPs/DASPs) must obtain mandatory prior approval from the Commission de Contrôle des Activités Financières (CCAF) and comply with rigorous AML/CFT standards supervised by the AMSF.
Key Pillars
Commission de Contrôle des Activités Financières (CCAF) - Primary regulator issuing mandatory approvals for crypto services
Autorité Monégasque de Sécurité Financière (AMSF) - Enforces AML/CFT compliance for all crypto operators
Mandatory Prior Approval Regime - All Digital Asset Service Providers (DASPs) must be authorized before operating
Sovereign Ordinance No. 8.258 - Details technical and financial requirements for token offerings
Landmark Laws
Law No. 1.528 (Loi n° 1.528) - Enacted: 2022-07-07
- Amends the Digital Principality Act to establish a comprehensive regulatory regime for Digital Asset Service Providers (DASPs). It mandates prior administrative approval for services like custody, exchange, and trading platforms, and imposes strict AML/CFT obligations.
- Source
Law No. 1.491 (Loi n° 1.491) - Enacted: 2020-06-23
- Introduced the legal framework for Token Offerings (ICOs/STOs), distinguishing between security tokens and utility tokens, and requiring a 'visa' (approval) from the Minister of State for public offerings.
- Source
Law No. 1.362 (Amended) (Loi n° 1.362) - Enacted: 2009-08-03
- The primary AML/CFT legislation, updated to explicitly include virtual asset service providers and token issuers as obligated entities subject to AMSF supervision.
- Source
Considerations
Zero Capital Gains Tax: Individuals acting non-professionally are generally exempt from capital gains tax on crypto assets.
Strict Licensing: Foreign entities cannot actively solicit Monaco residents without a local license; a local registered entity (SARL/SAM) is typically required.
Banking Access: While crypto is legal, local banks remain conservative; many residents use foreign licensed platforms or specific crypto-friendly payment solutions like Lyzi.
State-Backed Adoption: The majority state-owned SBM (casinos, hotels) accepts crypto, signaling strong government support for regulated usage.
Notes
Monaco's regulatory approach is characterized by 'quality over quantity.' While the legal framework is fully operational (Allowed-Regulated), the barrier to entry is intentionally high to prevent reputational risk. The partnership between Binance and Lyzi (mentioned in 2025 news) suggests a model where global liquidity providers partner with locally compliant fintechs to serve the market.
Remaining Uncertainties
- The exact number of standalone crypto exchanges (pure-play VASPs) that have successfully obtained the CCAF license remains opaque compared to the list of traditional banks.
- Whether major global exchanges like Binance operate via a direct Monaco license or solely through partnerships (like Lyzi) and cross-border passive solicitation.
Detailed Explanation
Detailed Explanation
Cryptocurrency activities in Monaco are legal and operate under a strictly regulated framework. The Principality established a comprehensive legislative structure beginning with Law No. 1.491 on June 23, 2020, which introduced a regulated environment for Token Offerings (ICOs/STOs), distinguishing between security and utility tokens and requiring a 'visa' or approval from the Minister of State for public offerings. This framework was significantly expanded by Law No. 1.528, enacted on July 7, 2022, which amended the Digital Principality Act to create a dedicated regime for Digital Asset Service Providers (DASPs). This law mandates that all DASPs, including those offering custody, exchange, and trading platform services, must obtain mandatory prior administrative approval before operating. Furthermore, the foundational anti-money laundering and combating the financing of terrorism (AML/CFT) legislation, Law No. 1.362 from August 3, 2009, has been updated to explicitly include virtual asset service providers and token issuers as obligated entities, subjecting them to rigorous supervision. The regulatory oversight is shared between two key bodies: the Commission de Contrôle des Activités Financières (CCAF), which serves as the primary regulator issuing mandatory approvals for crypto services, and the Autorité Monégasque de Sécurité Financière (AMSF), which enforces AML/CFT compliance for all authorized operators. A critical restriction within this framework is that foreign entities cannot actively solicit Monaco residents without obtaining a local license, typically requiring the establishment of a local registered entity such as a SARL or SAM. The high barrier to entry is a deliberate feature of Monaco's 'quality over quantity' approach, designed to mitigate reputational risk. Despite the legal status, local banks remain conservative, leading many residents to use foreign licensed platforms or specific, compliant payment solutions like Lyzi, which is notably used by the state-linked Société des Bains de Mer. An important financial consideration for individuals is the zero capital gains tax on crypto assets for those acting non-professionally.
Summary Points
I. Regulatory Status
* Allowed-Regulated: Cryptocurrency activities are fully legal and operate under a strict, dedicated regulatory framework established in 2020 and expanded in 2022.
II. Key Regulatory Bodies
* Commission de Contrôle des Activités Financières (CCAF): The primary regulator responsible for issuing mandatory prior approvals for all Digital Asset Service Providers (DASPs).
* Autorité Monégasque de Sécurité Financière (AMSF): The authority that supervises and enforces AML/CFT compliance for all authorized crypto operators, including token issuers.
III. Important Legislation
* Law No. 1.528 (Loi n° 1.528): Enacted on July 7, 2022.
* Amends the Digital Principality Act to establish a comprehensive regulatory regime for DASPs.
* Mandates prior administrative approval for services like custody, exchange, and trading.
* Imposes strict AML/CFT obligations on service providers.
* Law No. 1.491 (Loi n° 1.491): Enacted on June 23, 2020.
* Introduced the legal framework for Token Offerings (ICOs/STOs).
* Distinguishes between security tokens and utility tokens.
* Requires a 'visa' (approval) from the Minister of State for public offerings.
* Law No. 1.362 (Amended) (Loi n° 1.362): Enacted on August 3, 2009.
* The primary AML/CFT legislation, updated to explicitly include virtual asset service providers and token issuers as obligated entities.
* Sovereign Ordinance No. 8.258: Details the technical and financial requirements for token offerings.
IV. Compliance Requirements
* Mandatory Licensing: All DASPs must obtain prior approval from the CCAF before commencing operations.
* AML/CFT Standards: All operators must comply with rigorous AML/CFT standards as supervised by the AMSF.
* Local Presence: A local registered entity (e.g., SARL, SAM) is typically required for operation.
V. Notable Restrictions or Limitations
* Barrier to Entry: The regulatory regime has a high barrier to entry, reflecting a 'quality over quantity' approach to prevent reputational risk.
* Foreign Entity Solicitation: Foreign entities are prohibited from actively soliciting Monaco residents without a local license.
* Banking Access: Despite legality, local banks remain conservative, creating challenges for direct banking access; residents often use foreign licensed platforms.
VI. Recent Developments or Notes
* Zero Capital Gains Tax: Individuals acting non-professionally are generally exempt from capital gains tax on crypto assets.
* State-Backed Adoption: The majority state-owned Société des Bains de Mer (SBM) accepts cryptocurrency payments via the Lyzi solution, signaling strong government support for regulated usage.
* Market Model: A partnership model is emerging where global liquidity providers (e.g., Binance) partner with locally compliant fintechs (e.g., Lyzi) to serve the market, as indicated in 2025 news.
Full Analysis Report
Full Analysis Report
Monaco has established itself as a 'Allowed-Regulated' jurisdiction with a sophisticated and restrictive legal framework designed to attract high-value fintech projects while maintaining its reputation for financial security. The regulatory foundation was laid with Law No. 1.491 in 2020, which regulated Initial Coin Offerings (ICOs), and was significantly expanded by Law No. 1.528 in July 2022. This later legislation created a mandatory licensing regime for Digital Asset Service Providers (DASPs), requiring entities to demonstrate robust governance, local presence, and AML/CFT compliance before offering services like custody or exchange to residents.
The primary regulator, the Commission de Contrôle des Activités Financières (CCAF), oversees the licensing process. Unlike some jurisdictions that operate on a simple registration basis, Monaco requires 'mandatory prior approval,' a higher standard that involves detailed scrutiny of the applicant's business model and management. The Autorité Monégasque de Sécurité Financière (AMSF) works alongside the CCAF to enforce strict anti-money laundering rules, ensuring that the Principality does not become a haven for illicit crypto flows. This dual-layer supervision reflects Monaco's cautious but pro-innovation stance.
From a retail perspective, residents are free to buy, sell, and hold cryptocurrencies. A significant advantage for individual investors is the tax regime: Monaco levies no income or capital gains tax on individuals for private crypto activities, provided they are not classified as professional traders. This has made the Principality an attractive destination for crypto-wealthy individuals. However, the operational landscape for businesses is exclusive; only those willing to meet high capital and compliance standards can enter the local market.
Practical adoption is visible in the luxury sector. In a landmark move, the Société des Bains de Mer (SBM)—which owns the famous Monte Carlo Casino and is majority-owned by the State—partnered with the fintech solution Lyzi to accept cryptocurrency payments. This integration allows customers to pay for hotels, dining, and other services using crypto, which is then instantly converted to fiat for the merchant. This partnership serves as a strong operational indicator that crypto is not only legal but integrated into the highest levels of Monaco's economy, provided it flows through regulated channels.
Monaco has established itself as a 'Allowed-Regulated' jurisdiction with a sophisticated and restrictive legal framework designed to attract high-value fintech projects while maintaining its reputation for financial security. The regulatory foundation was laid with Law No. 1.491 in 2020, which regulated Initial Coin Offerings (ICOs), and was significantly expanded by Law No. 1.528 in July 2022. This later legislation created a mandatory licensing regime for Digital Asset Service Providers (DASPs), requiring entities to demonstrate robust governance, local presence, and AML/CFT compliance before offering services like custody or exchange to residents. The primary regulator, the Commission de Contrôle des Activités Financières (CCAF), oversees the licensing process. Unlike some jurisdictions that operate on a simple registration basis, Monaco requires 'mandatory prior approval,' a higher standard that involves detailed scrutiny of the applicant's business model and management. The Autorité Monégasque de Sécurité Financière (AMSF) works alongside the CCAF to enforce strict anti-money laundering rules, ensuring that the Principality does not become a haven for illicit crypto flows. This dual-layer supervision reflects Monaco's cautious but pro-innovation stance. From a retail perspective, residents are free to buy, sell, and hold cryptocurrencies. A significant advantage for individual investors is the tax regime: Monaco levies no income or capital gains tax on individuals for private crypto activities, provided they are not classified as professional traders. This has made the Principality an attractive destination for crypto-wealthy individuals. However, the operational landscape for businesses is exclusive; only those willing to meet high capital and compliance standards can enter the local market. Practical adoption is visible in the luxury sector. In a landmark move, the Société des Bains de Mer (SBM)—which owns the famous Monte Carlo Casino and is majority-owned by the State—partnered with the fintech solution Lyzi to accept cryptocurrency payments. This integration allows customers to pay for hotels, dining, and other services using crypto, which is then instantly converted to fiat for the merchant. This partnership serves as a strong operational indicator that crypto is not only legal but integrated into the highest levels of Monaco's economy, provided it flows through regulated channels.
Source Evidence
Primary and secondary sources cited in this analysis
"L'exercice de l'activité de prestataire de services sur actifs numériques est subordonné à l'obtention d'un agrément préalable."
"View the list of firms and institutions authorised by the Commission... and the activities for which they are authorised."
"Monaco has regulation for creating and supervising VASPs (Law 1.528 and Law 1.491)."
"The SBM is partnering with Lyzi to allow its customers to pay in cryptocurrencies and stablecoins in its establishments."
"The new Law sets a requirement to apply for a prior licence to conduct such regulated activities in Monaco."
Web Sources (8)
Sources discovered via web search grounding
Search queries used (13)
- Monaco Law No. 1.528 digital assets
- Monaco cryptocurrency regulation retail trading status
- Monaco Law No. 1.491 digital assets summary
- list of licensed crypto exchanges Monaco CCAF
- AMSF Monaco virtual asset service provider registration
- Société des Bains de Mer crypto payment Monaco
- Monaco crypto license "Law 1.528" issued
- list of licensed Digital Asset Service Providers Monaco CCAF
- "Binance" Monaco license CCAF
- Monaco "mandatory prior approval" crypto assets list
- Monaco crypto tax capital gains individuals
- Monaco Law 1.528 text "mandatory prior approval"
- "Lyzi" Monaco license status
https://metlabs.io/en/regulation-blockchain-monaco/
https://www.hellomonaco.com/news/latest-news/how-cryptocurrencies-are-taxed-in-the-principality-of-monaco/
https://www.quora.com/Can-I-be-a-resident-in-Monaco-and-not-pay-capital-gains-tax-on-selling-cryptocurrency-if-I-put-the-money-in-a-bank-in-Monaco-Assuming-you-bought-the-crypto-in-the-US-with-a-home-computer
https://www.gordonblair.com/publications/crypto-assets-and-metaverse-in-the-principality-of-monaco-a-new-legal-framework-for-investors/
https://blog.mexc.com/wiki/are-there-any-taxes-for-crypto-in-monaco/
https://ssl-ppr.qwamci.com/qespprs/img/bases/pprluxe/files/20241218/20241218_1_000.pdf
https://investors.directory/top-5-crypto-digital-asset-platforms-in-monaco/
https://www.relocateandsave.com/crypto-tax-free-countries/