Bill No. 1131 regulating the activities of Crypto-Asset Service Providers (CASP)

SUMMARY

Bill No. 1131 on the regulation of the activities of crypto-asset service providers (2026-10, 28 July 2026), received by the Parliament on 6 August 2026, sets out Monaco’s international commitments within the framework of the European Union (Monetary Agreement concluded on 29 November 2011 between the European Union and the Principality of Monaco, EU banking and financial legislation) and the Financial Action Task Force (FATF) (International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation “AML/CFT-P”).

The Law would be supplemented by a Sovereign Order setting out the implementing provisions.

According to the Explanatory Memorandum, Bill No. 1131 aims to “provide a clear framework for operators likely to be involved in crypto-asset services in the Principality, under the supervision of the competent authority” (the Financial Activities Supervisory Commission, “CCAF”) and to “ensure that unauthorised activities can be identified and sanctioned, in accordance with the applicable requirements relating to the fight against money laundering and terrorist financing and with the relevant international standards.”

Compliance with Regulation (EU) MiCA and FATF Recommendation No. 15:

Bill No. 1131, comprising 60 articles, brings Monegasque law into line with the following texts:

• Regulation (EU) 2023/114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets [MiCA], setting out the rights and obligations of crypto-asset issuers, public offerors, those seeking admission to trading of crypto-assets, and crypto-asset service providers (CASP): transparency and disclosure requirements for the issuance, public offering and admission to trading of crypto-assets on a trading platform; authorisation and supervision of CASPs, issuers of asset-backed tokens and issuers of e-money tokens; the operation, organisation and governance of issuers and PSCA; protection of crypto-asset holders and clients; prevention of insider dealing, unlawful disclosure of inside information and market manipulation.
  Regulation (EU) MiCA, listed in Annex B (under "EU banking and financial legislation") of the Monaco-EU Monetary Agreement since Sovereign Order No. 11.278 of 18 June 2025, must be implemented in Monaco by 31 December 2026 at the latest.
  The Explanatory Memorandum to Bill No. 1131 states that the Bill “is not intended to create a crypto-asset market in the Principality, nor to authorise all the services provided for under the MiCA Regulation. It aims to provide a targeted regulatory framework for crypto-asset services that may be provided in Monaco, whilst prohibiting activities that fall outside the scope of the legislation”. The Monegasque text covers three of the ten crypto-asset services provided for in Article 3(16) of the MiCA Regulation (EU).
• FATF Recommendation No. 15 on new technologies [AML/CFT-P Standards, R.15 and Interpretative Note INR.15] applicable to virtual assets (VAs) and virtual asset service providers (VASPs): identification, assessment and management of AML/CFT-P risks associated with new technologies, new products and VAs; regulation, authorisation or registration of VASPs; and compliance with AML/CFT-P due diligence obligations.

Content of Bill No. 1131 :

Bill No. 1131:

• governs the provision of services relating to crypto-assets as follows, which are the only such services that may be offered within the territory of Monaco:
  1) reception and transmission of orders for crypto-assets on behalf of clients;
  2) providing portfolio management on crypto-assets;
  3) providing advice on crypto-assets;
• prohibits all crypto-asset services other than those mentioned above.The following seven crypto-asset services provided for in the MiCA Regulation (EU) are excluded from the scope of the Monegasque Law: "providing custody and administration of crypto-assets on behalf of clients"; "operation of a trading platform for crypto-assets"; "exchange of crypto-assets for funds"; "exchange of crypto-assets for other crypto-assets"; "execution of orders for crypto-assets on behalf of clients"; "placing of crypto-assets"; "providing transfer services for crypto-assets on behalf of clients".
• excludes the following crypto-assets from the scope of the Law:
  • crypto-assets that are unique and non-fungible with respect to other crypto-assets;
  • crypto-assets that qualify as financial instruments, deposits or structured deposits, or any crypto-asset whose underlying asset is a product or instrument covered by a legal regime existing or applicable in Monaco.
• makes the provision of the aforementioned crypto-asset services subject to the prior obtaining of an authorisation ("agrément") issued by the Financial Activities Supervisory Commission (CCAF), following consultation with the Monegasque Financial Security Authority (AMSF) and the Monegasque Digital Security Agency (AMSN), which may only be granted to:
  1°) Monegasque public limited companies (SAM) with an effective presence in Monaco;
  2°) credit institutions whose registered office is situated in a foreign state, which have a branch in Monaco and which have been granted authorisation by the CCAF pursuant to Law No. 1.338 of 7 September 2007 on financial activities.
• sets out the obligations of CASPs, in particular the establishment of sound governance, compliance with prudential requirements, the securing of information systems (IS), and the implementation of AML/CFT-P-C measures (Chapter II).
• sets out the remit and powers of the Financial Activities Supervisory Commission (CCAF) in relation to policing, supervision and investigation, as well as the policing powers of the Minister of State, upon recommendation (Chapter III).
• provides for administrative penalties and safeguard measures, as well as criminal penalties for non-compliance with this Law (Chapter IV).
• crackdowns onmarket abuse relating to crypto-assets: insider dealing, unlawful disclosure of inside information, market manipulation (Chapter V).

Furthermore, Bill No. 1131 introduces the following:

• updates: Law No. 1.383 of 2 August 2011 on a Digital Principality, as amended (amended, repealed or new definitions); Law No. 1,338 of 7 September 2007 on financial activities, as amended (reference to this Act in relation to PSCA authorisation for Monegasque public limited companies (SAMs) that are not credit institutions); Law No. 1,362 of 3 August 2009 on combating money laundering, the financing of terrorism and the proliferation of weapons of mass destruction, and corruption, as amended (LCB-FT-P-C) (amendment to the list of regulated entities dealing in "virtual assets" or "crypto-assets");
• repeals: Law No. 1.491 of 23 June 2020 on token offerings, as amended (covering fundraising: private or publicInitial Coin Offerings (ICOs), and private Security Token Offerings(STOs); Title II (Articles 10 to 40) of the Law No. 1.528 of 7 July 2022 amending various provisions relating to digital technology and regulating the activities of service providers dealing in virtual assets or crypto-assets.

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IN DETAIL • PROVISIONS OF BILL No. 1131 (prior review of the parliamentary committee)

CHAPTER ONE - GENERAL PROVISIONS

Article 1. Definitions, within the meaning of the Law No. 1.383 of 2 August 2011 on a Digital Principality, as amended :

• "1°) "virtual asset", a digital representation of value that can be exchanged digitally or transferred, and which can be used for payment or investment purposes, excluding digital representations of legal tender and financial instruments;"
• "3°) "crypto-asset", a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology";
• "69-1°) "distributed ledger", an information repository that keeps records of transactions and that is shared across, and synchronised between, a set of DLT network nodes using a consensus mechanism;

Article 2. Services relating to crypto-assets that may be provided within the territory of Monaco:

1. reception and transmission of orders for crypto-assets on behalf of clients (the reception from a person of an order to purchase or sell one or more crypto-assets or to subscribe for one or more crypto-assets and the transmission of that order to a third party for execution, ,Article 1(23) of the MiCA Regulation (EU));
2. providing portfolio management of crypto-assets (managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more crypto-assetsthe provision of crypto-asset portfolio management services, Article 1(25) of the MiCA Regulation (EU)) ;
3. providing advice on crypto-assets (offering, giving or agreeing to give personalised recommendations to a client, either at the client’s request or on the initiative of the crypto-asset service provider providing the advice, in respect of one or more transactions relating to crypto-assets, or the use of crypto-asset services, Article 1(24) of the MiCA Regulation (EU)).

Article 3. Exclusions from the scope of the Law:

1. persons who provide services relating to crypto-assets solely for the benefit of the legal entities that control them directly or indirectly, and of the legal entities controlled by those entities (services provided within the same group);
2. chartered accountants ("experts-comptables") appointed as court-appointed administrators ("administrateur judiciaire"), liquidators ("liquidateur") or trustees ("syndic") when acting in the context of court-supervised settlement or liquidation proceedings;
3. State;
4. public international organisations;
5. crypto-assets that are unique and non-fungible in relation to other crypto-assets (NFT);
6. crypto-assets that qualify as financial instruments, deposits or structured deposits, or any crypto-asset whose underlying asset is a product or instrument covered by a legal regime that exists or is applicable in Monaco.

Article 4. Prohibition on services relating to crypto-assets other than those expressly authorised by Article 2.

The following services are prohibited within Monegasque territory:

1. providing custody and administration of crypto-assets on behalf of clients (the safekeeping or controlling, on behalf of clients, of crypto-assets or of the means of access to such crypto-assets, where applicable in the form of private cryptographic keys, Article 1(17) of the MiCA Regulation (EU) );
2. operation of a trading platform for crypto-asset (the management of one or more multilateral systems, which bring together or facilitate the bringing together of multiple third-party purchasing and selling interests in crypto-assets, in the system and in accordance with its rules, in a way that results in a contract, either by exchanging crypto-assets for funds or by the exchange of crypto-assets for other crypto-assets, Article 1(18) of the MiCA Regulation (EU)) ;
3. exchange of crypto-assets for funds (the conclusion of purchase or sale contracts concerning crypto-assets with clients for funds by using proprietary capital, Article 1(19) of the MiCA Regulation (EU));
4. exchange of crypto-assets for other crypto-assets (the conclusion of purchase or sale contracts concerning crypto-assets with clients for other crypto-assets by using proprietary capital, Article 1(20) of the MiCA Regulation (EU)) ;
5. execution of orders for crypto-assets on behalf of clients (the conclusion of agreements, on behalf of clients, to purchase or sell one or more crypto-assets or the subscription on behalf of clients for one or more crypto-assets, and includes the conclusion of contracts to sell crypto-assets at the moment of their offer to the public or admission to trading", Article 1(21) of the MiCA Regulation (EU));
6. placing of crypto-assets (the marketing, on behalf of or for the account of the offeror or a party related to the offeror, of crypto-assets to purchasers, Article 1(22) of the MiCA Regulation (EU));
7. providing transfer services for crypto-assets on behalf of clients (providing services of transfer, on behalf of a natural or legal person, of crypto-assets from one distributed ledger address or account to another, Article 1(26) of the MiCA Regulation (EU));
8. any service relating to a virtual asset, within the meaning of Law No. 1.362 LCB/FT-P-C, which does not fall within the categories of crypto-asset services as defined in Article 2 of this Law.

These services will be set out in a Sovereign Order.

Services relating to virtual assets that do not fall within the scope of authorised services are also prohibited within Monegasque territory, as is any issuance of crypto-assets.

CHAPTER II - CONDITIONS GOVERNING THE OPERATIONS OF CRYPTO-ASSET SERVICE PROVIDERS (CASPs)

Article 5. Prior authorisation ("agrément") must be obtained from the Financial Activities Supervisory Commission (CCAF) for all or part of the authorised services.

Entities eligible for authorisation:

1. Monegasque public limited companies ("sociétés anonymes monégasques" SAM) with an effective presence in Monaco: they have their registered office in Monaco, where they provide at least some of their services relating to crypto-assets. They have their effective centre of management in Monaco and at least one of their directors resides there;
2. credit institutions whose registered office is situated in a foreign country, which have a branch in the Principality and which have been authorised by the CCAF under Law No. 1.338 of 7 September 2007 on financial activities.

CASPs that have been authorised must comply with the terms of their authorisationat all times.

The list of accredited CAPS, specifying the services for which they are accredited, is published on the CCAF website.

The notice of the grant or revocation of authorisation is published in the Journal de Monaco.

Article 6. Conditions for the granting of authorisation.

1. financial guarantees, assessed in the light of the quality of the capital providers, whether direct or indirect, the shareholders, whether direct or indirect, and the beneficial owners;
2. the good repute and competence of the persons responsible for the effective management of the company and the shareholders, carried out by the department responsible for the supervisory function of the Monegasque Financial Security Authority (AMSF) in accordance with Articles 53-2 et seq. of Law No 1.362 AML/CFT-P-C, as amended (opinion of the AMSF obtained by the CCAF);
   
3. capital requirements and prudential guarantees,
4. outsourcing of a critical or important function, subject to compliance with the obligations set out in Article 17;
5. the applicant’s ability to fulfil its obligations in relation to AML/CFT-P-C and the freezing of funds and economic resources (opinion of the AMSF obtained by the CCAF);
6. the existence of a business continuity plan, in accordance with the provisions of Article 10;
7. organisational and technical measures designed to ensure the security of information systems (IS) (opinion of the Monegasque Digital Security Agency (AMSN) obtained by the CCAF);
8. conditions for using trading platforms established outside Monaco, which must be authorised in accordance with Regulation (EU) 2023/1114 (MiCA), and must not
   be included on lists of non-compliant platforms or be subject to a ban published by the competent authorities of the Member States of the European Union.

The implementing provisions will be laid down by Sovereign Order.

Article 7. Submission of the application for authorisation to the CCAF, which shall decide within six months. The contents of the application are laid down by Sovereign Order.

Article 8. Any changes made to the key elements of the authorisation application are subject to prior authorisation by the CCAF.

Article 9. Prudential and conduct rules for authorised CASP organisations. Their staff must possess the knowledge, skills and expertise necessary to carry out the responsibilities entrusted to them,in accordance with the terms set out in the Sovereign Order.

Article 10. Measures necessary to ensure the continuity and regularity of services provided by authorised CASP organisations. CASPs must have appropriate resources and procedures, resilient and secure information and communication technology systems, and business continuity and recovery plans,in accordance with the terms set out in the Sovereign Order.

Article 11. Digital operational resilience requirements for authorised CASP organisations, and the implementation of effective risk assessment mechanisms in relation to AML/CFT-P-C in order to comply with the provisions of Law No. 1.362 of 3 August 2009, as amended.

Article 12. Measures for the prevention and management of conflicts of interest, set out in writing and appropriate to the size, organisation and nature of the CASP’s services, in accordance with the procedures laid down by Sovereign Order.

Article 13. Retention of relevant information and records relating to services and transactions for a period of 5 years, which may be extended at the request of the CCAF, the AMSF or the competent judicial authorities.

Article 14. Framework for mandates entrusted by clients,which must relate to the services covered by the authorisation and be the subject of written agreements setting out the service provider’s remit, as well as the respective responsibilities of the parties.

Article 15. Prohibition on authorised PSCA firms from accepting deposits of funds or crypto-assets from their clients and from carrying out transactions between accounts
between a client’s account and their own account, or direct transactions between clients’ accounts.

Article 16. Assessment of the suitability of the service or crypto-asset in light of the client’s knowledge and experience.The client must be informed where the service or crypto-asset does not appear to be suitable or where the information provided is insufficient.

Article 17. Outsourcing of operational functions. The delegation must comply with the conditions laid down by Sovereign Order.

Articles 18 to 20. Regulation of commercial approaches. Regulation of approaches, whether solicited or unsolicited, carried out by unauthorised persons, regardless of the location or means used, including remotely, as well as unsolicited approaches carried out by authorised CASP operators.

Article 21. Preparation of an annual activity report and a certificate, in accordance with the provisions governing the conduct of financial activities.

Articles 22 and 23. Framework governing the work of statutory auditorsat approved CASP organisations: appointment, the task of certifying the annual activity report, and obligations to disclose information to the competent authorities.

CHAPTER III - THE COMPETENT AUTHORITY

Section I - The duties of the competent authority

Article 24. The Financial Activities Supervisory Commission (CCAF) is the competent authority responsible for ensuring compliance with the Act and its implementing regulations. Details of its remit in relation to authorisation, supervision, international cooprration, investigation and administrative sanctions, as well as its role in monitoring compliance with the prohibitions laid down in this Law.

Section II - Powers of the competent authority

I - Police measures

Article 25. Regulatory measures that may be taken by the CCAF. The CCAF may, in particular, impose interim measures, order the cessation of activities carried out without authorisation, order the transfer of contracts following the withdrawal of authorisation, and, where necessary, request the intervention of the judicial authorities to ensure that its decisions are effectively enforced.

Article 26. The Minister of State may prohibit or restrict the marketing of certain crypto-assets or certain practices where they pose a significant risk. The criteria (“reasonable grounds”) justifying the adoption of such measures are set out. The Minister of State may consult the CCAF to seek its opinion on the appropriateness of the ban or restriction.

II - Powers of supervision and investigation

Article 27. Powers of the CCAF, in addition to the powers conferred on the Monegasque Financial Security Authority (AMSF) in relation to AML/CFT, in particular to require the disclosure or the publication of information relevant to client protection and to ensure the supervision of documents intended for the public.

Article 28. Procedures for the CCAF to carry out inspections and investigations in accordance with the conditions set out in the Article 12 of Law No. 1.338 of 7 September 2007 on financial activities, as amended. The conditions under which certain information may be disclosed to the authority are set out, with adjustments made to the rules on professional secrecy in order to ensure the effectiveness of its investigations.

Article 29. The Chair of the CCAF shall appoint the persons authorised to carry out audits and investigations in accordance with the conditions set out in the Article 13 of Law No. 1.338 of 7 September 2007 on financial activities, as amended.

Article 30. The inspections and investigations required under this Law shall be subject to the provisions set out in Articles 13-1 to 15 of Law No. 1.338 of 7 September 2007 on financial activities, as amended.

Section III - Professional confidentiality and data protection

Article 31. Professional secrecy and duty of confidentiality in the performance of their duties by members of the CCAF and authorised persons. These obligations shall not be enforceable against the judicial authorities when they are acting in the context of criminal proceedings.

Article 32. Protection scheme for the financial institution, its directors, its employees or any other person who, in good faith, provides information or documents to the CCAF or participates in its investigations, safeguarding them against any criminal proceedings based on a breach of professional secrecy, as well as against any civil liability claims or professional sanctions resulting from such cooperation.

Article 33. Information collected under this Law shall be processed in accordance with the provisions of the Law No. 1.565 of 3 December 2024 on the protection of personal data.

Section IV - Relations between the competent authority and the supervisory authorities

Article 34. Relations between the CCAF and foreign supervisory authorities are governed by the Articles 16 to 20 of Law No. 1.338 of 7 September 2007 on financial activities, as amended.

CHAPTER IV - PENALTIES

Section I - Administrative sanctions and safeguard measures

Article 35. The CCAF may impose the following measures on an authorised CASP:

• a warning or a reprimand,
• or the temporary suspension of the authorisation for a period of less than six months, or its revocation, where the authorised CASP:
  1°) has not, without legitimate reason, carried out any significant activity for a period of six months or has expressly renounced its authorisation;
  2°) no longer has the facilities or staff necessary to carry on the activities covered by the authorisation;
  3°) has obtained its authorisation by means of false statements or by any other irregular means;
  4°) no longer meets the conditions under which the authorisation was granted;
  5°) has substantially and repeatedly contravened the provisions of this Law or its implementing regulations;
  6°) where the continuation of its activities is likely to prejudice the interests of clients.

The CCAF may limit the revocation of authorisation to a specific crypto-asset service.

Article 36. The provisions relating to administrative sanctions and safeguard measures set out in Articles 35 to 40 as well as the articles Articles 42 and 42-1 of Law No. 1.338 of 7 September 2007 on financial activities, as amended, apply to PSCA organisations authorised under this Law.

Proceedings likely to result in the imposition of administrative sanctions may not be brought on the basis of facts dating back more than three years if, during that period, no steps have been taken to investigate, establish or sanction them.

Article 37. A Monegasque public limited company ("société anonyme monégasque" SAM) whose main or sole corporate purpose is to act as a CASP, and whose authorisation as a CASP has been withdrawn, must be wound up in accordance with the procedure and within the time limits laid down by the Articles 5 to 7 of Law No. 767 of 8 July 1964. Where CASP authorisation constitutes merely an extension of the company’s activities and does not correspond to its principal or exclusive corporate purpose, the withdrawal of that authorisation does not, in itself, result in the dissolution of the company.

In the event of non-compliance, the Minister of State may request the President of the Court of First Instance to order the winding up of the company and to appoint a liquidator to carry out the liquidation proceedings.

Section II - Criminal penalties

Article 38. The offence is punishable by imprisonment for a term of one to five years and/or a fine as provided for in paragraph 4 of Article 26 of the Criminal Code (from 18,000 to 90,000 euros) the maximum of which may be increased to the amount of any profit made, any person who:

• engages in, or attempts to engage in, in their own name or in any capacity whatsoever, all or part of the services provided for in section 2 of this Act without having obtained one of the necessary authorisations under Article 5 or Article 8,
• engages in, or attempts to engage in, in their own name or in any capacity whatsoever, within the territory of Monaco, all or part of the services prohibited under Article 4 of this Law.

Article 39. The following shall be liable to imprisonment for a term of one to five years and/or a fine as provided for in paragraph 4 of Article 26 of the Criminal Code (from 18,000 to 90,000 euros), the maximum of which may be increased to the amount of any profit made, the directors of authorised CASP:

1. whose services, subject to other authorisations, exceed the limits set out in the authorisation granted under Articles 5 or 8 of this Law;
2. which carry out all or part of the services defined in Article 2 of this Law after the authorisation held by those companies pursuant to Article 5 or Article 8 has been wholly or partially withdrawn or temporarily suspended, or after the court has prohibited the continuation of their activities.

Article 40.The following offences are punishable by imprisonment for a term of one to five years and/or the fine provided for in paragraph 4 of Article 26 of the Criminal Code (from 18,000 to 90,000 euros), the maximum amount of which may be increased up to three times:

1. managers of authorised CASPs who obstruct audits or inspections carried out by statutory auditors or who refuse to provide them with the documents necessary for the performance of their duties;
2. any person who obstructs an audit or investigation carried out by the CCAF in accordance with the provisions of Articles 27 to 30, or who provides it with inaccurate information;
3. any person who, in breach of the provisions of Article 18, takes or causes to be taken any action, or causes prohibited advertising to be included.

Article 41. The following shall be liable to imprisonment for a term of between six months and two years and/or the fine provided for in paragraph 3 of Article 26 of the Criminal Code (from 9,000 to 18,000 euros), directors of authorised CASPs who fail to ensure the appointment of statutory auditors as provided for in Article 22.

Article 42. The following shall be punishable by the fine provided for in paragraph 4 of Article 26 of the Criminal Code (from 18,000 to 90,000 euros):

1. any person summoned by the CCAF or by persons authorised by it in accordance with Article 30 to attend a hearing, who, without legitimate reason, fails to comply with that summons;
2. any person, other than the directors of an authorised CASP, who obstructs the audits or inspections carried out by the statutory auditors or who refuses to provide them with the documents necessary for the performance of their duties.

Article 43. The court hearing proceedings relating to offences under this Law involving the directors of an authorised CASP may, at any stage of the proceedings, seek the opinion of the CCAF.

Penalties applicable to legal persons held criminally liable under the terms of the Article 4-4 of the Criminal Code, offences defined by this Law are punishable, in addition to the fine provided for in the Article 29-2 of the Criminal Code, the penalties provided for in Articles 29-3 (dissolution) and Section 29-4 of the Criminal Code (prohibitions on practising, placement under judicial supervision, closure of premises, confiscation, publication of the decision and other financial restrictions).

Article 44. A repeat offence in respect of the offences referred to in Articles 38 to 43 shall result in the fines provided for in those Articles being doubled.

CHAPTER V - OFFENCES RELATING TO MARKET MANIPULATION ("ABUS DE MARCHÉ")

Criminalisation of insider dealing, including the unlawful use, recommendation, incitement or disclosure of inside information, as well as various forms of market manipulation, in particular the dissemination of false or misleading information, practices likely to artificially distort the prices of crypto-assets, and conduct that undermines the proper functioning of trading platforms:

Article 45. Any person who commits the following offence shall be liable to four years’ imprisonment and a fine of one hundred million euros, which may be increased to up to ten times the amount of the benefit derived from the offence, provided that the fine shall not be less than that benefit:

• an act by a member of the administrative, management or supervisory bodies of an issuer, an offeror or a person applying for admission to trading, who is in possession of inside information, or by a person performing an equivalent function, or by a person in possession of inside information relating to an issuer, an offeror or a person applying for admission to trading in which they hold a stake, by a person in possession of inside information by virtue of their profession or duties, by virtue of their role in distributed ledger technology or similar technology, or in the course of their involvement in the commission of a criminal offence or misdemeanour, or by any other person knowingly in possession of inside information, from using that inside information by carrying out, for themselves or for others, either directly or indirectly, one or more transactions, or by submitting, amending or withdrawing an offer relating to crypto-assets to which that information relates, or by cancelling or amending one or more orders placed by that same person before they held the inside information, in respect of crypto-assets issued, offered or admitted to trading by that issuer, that issuer or that person, or in crypto-assets to which such inside information relates.
• Under the rules governing crypto-assets, the mere fact that a person possesses inside information does not in itself constitute this offence if their conduct is legitimate.
• An attempt to commit the offence is punishable by the same penalties.

Article 46.The following shall be punishable by four years’ imprisonment and a fine of one hundred million euros, which may be increased to up to ten times the amount of the benefit derived from the offence, provided that the fine shall not be less than that benefit:

• an act by a member of the administrative, management or supervisory bodies of an issuer, an offeror or a person applying for admission to trading, who is in possession of inside information, or by a person performing an equivalent function, or by a person in possession of inside information relating to an issuer, an offeror or a person applying for admission to trading in which they hold a stake, by a person in possession of inside information by virtue of their profession or duties, by virtue of their role in distributed ledger technology or similar technology, or in the course of their involvement in the commission of a criminal offence or misdemeanour, or by any other person knowingly in possession of inside information, to recommend the execution of one or more transactions in the crypto-assets to which the inside information relates, or to recommend the cancellation or amendment of an order relating to those crypto-assets, or to induce the execution of such transactions or such cancellations or amendments on the basis of that inside information.
• An attempt to commit the offence is punishable by the same penalties.

The following constitutes the offence referred to in Article 45:

• the act, by any person, of making use of the recommendation or inducement referred to above whilst knowing, or ought to have known, that it is based on inside information.

The following constitutes the offence referred to in the first paragraph of Article 47:

• the act, by any person, of disclosing the recommendation or inducement referred to above whilst knowing, or ought to have known, that it is based on inside information.

Article 47. Any person who commits the following offence shall be liable to two years’ imprisonment and a fine of one hundred million euros, which may be increased to up to ten times the amount of the benefit derived from the offence, provided that the fine shall not be less than the amount of that benefit:

• the act, by a person in possession of inside information concerning an issuer, an offeror or a person applying for admission to trading, of which that person is a member of the administrative, management or supervisory bodies or in which that person holds a stake; or by a person in possession of inside information by virtue of their profession or duties; by virtue of their role in distributed ledger technology or similar technology, or in the course of their involvement in the commission of a criminal offence or misdemeanour, or by any other person knowingly in possession of inside information, to disclose it to a third party, unless they can prove that such disclosure takes place in the normal course of their profession or duties, including where it forms part of a market sounding.
• An attempt to commit the offence is punishable by the same penalties.

Article 48. Any person who commits the following offence shall be liable to four years’ imprisonment and a fine of one hundred million euros, which may be increased to up to ten times the amount of the benefit derived from the offence, provided that the fine shall not be less than that benefit:

• the act, by any person, of carrying out a transaction, placing an order, performing any other activity or engaging in conduct which gives, or is likely to give, false or misleading signals regarding the supply, demand or price of a crypto-asset, or which fixes, or is likely to fix, the price of one or more crypto-assets at an abnormal or artificial level. No offence is committed where the transaction or conduct in question is based on a legitimate reason.
• the act, by any person, of carrying out a transaction, placing an order, performing any other activity or engaging in conduct that affects or is likely to influence the price of one or more crypto-assets, by using fictitious means or any other form of deception or manipulation.
• the act, by any person, of securing a dominant position in relation to the supply or demand for a crypto-asset, with the actual or potential effect of directly or indirectly fixing the purchase or sale prices or creating, actually or potentially, other unfair trading conditions. An attempt to commit this offence is punishable by the same penalties.
• the act, by any person,to take advantage of occasional or regular access to traditional or electronic media by issuing an opinion on a crypto-asset after having taken positions in that crypto-asset and subsequently profiting from the impact of that opinion on the price of that crypto-asset, without simultaneously disclosing that conflict of interest to the public in an appropriate and effective manner. An attempt to commit this offence is punishable by the same penalties.

Article 49. The following offences are punishable by four years’ imprisonment and a fine of one hundred million euros, which may be increased to up to ten times the amount of the benefit derived from the offence, provided that the fine is not less than that benefit:

• the act, by any person, of disseminating, by any means including through the media, such as the internet, information that gives false or misleading indications as to the situation or prospects of an issuer, an offeror or the offer, the demand or the price of one or more crypto-assets, or which fix or are likely to fix the price of one or more crypto-assets at an abnormal or artificial level, where the person who disseminated such information knew or ought to have known that it was false or misleading. An attempt is punishable by the same penalties.
• the act of spreading rumours about a crypto-asset whilst knowing, or ought to have known, that they are false or misleading.

Article 50. The following offence is punishable by four years’ imprisonment and a fine of one hundred million euros, which may be increased to up to ten times the amount of the benefit derived from the offence, provided that the fine shall not be less than that benefit:

• the act, by any person, of placing orders on a crypto-asset trading platform, including cancelling or amending such orders, using any available trading means, where this has the effect of giving, or is likely to give, false or misleading signals regarding the supply, demand or price of a crypto-asset, or of fixing, or being likely to fix, the price of one or more crypto-assets at an abnormal or artificial level, in particular by:
  1°) disrupting or delaying the operation of the crypto-asset trading platform or engaging in any activity likely to have that effect;
  2°) making it difficult for other persons to recognise genuine orders placed on the crypto-asset trading platform or engaging in any activity likely to have that effect, including by placing orders that destabilise the normal operation of the platform;
  3°) creating a false or misleading indication as to the supply, demand or price of a crypto-asset, in particular by placing orders intended to initiate or exacerbate a trend, or by engaging in any activity likely to have that effect.
• An attempt is punishable by the same penalties.

Article 51. Scope of the offences:

1. crypto-assets admitted to trading on a crypto-asset trading platform or for which an application for admission to trading has been made;
2. any transaction, order or conduct relating to the crypto-assets referred to in point 1 above, regardless of whether such transaction, order or conduct takes place on a trading platform;
3. actions taken and omissions committed in connection with the crypto-assets referred to in point 1 above, whether they occur within the territory of Monaco or abroad.

Article 52. Conduct excluded from the scope of offences where it is carried out in accordance with the applicable rules or is justified on legitimate grounds:

1. repurchases of crypto-assets by their issuer or offeror, where such repurchases are carried out in accordance with the applicable rules;
2. crypto-asset stabilisation operations carried out in accordance with the applicable rules;
3. transactions, orders or conduct that form part of activities carried out in accordance with policy decisions, such as monetary or exchange rate policies, in accordance with the applicable market rules.

Article 53. Legal persons found criminally liable under the terms of the Article 4-4 of the Criminal Code, offences defined in Articles 45 to 50 of this chapter are punishable, in addition to the fine provided for in the Article 29-2 of the Criminal Code, the penalties provided for in Articles 29-3 (dissolution) and Section 29-4 of the Criminal Code (prohibitions on practising, placement under judicial supervision, closure of premises, confiscation, publication of the decision and other financial restrictions).

Article 54. Increased penalties where the offences set out in Articles 45 to 50 are committed by an organised gang ("bande organisée"), within the meaning of Article 392-2 of the Criminal Code (any group formed or any agreement entered into with a view to the preparation, as evidenced by one or more material acts, of one or more offences): ten years’ imprisonment and a fine of one hundred million euros, which may be increased to up to ten times the amount of the benefit derived from the offence.

Article 55. Definition of the concept of inside information and the criteria relating to it:

1°) For the purposes of this Law, the term inside information covers the following types of information:

• specific information which has not been made public, which relates, directly or indirectly, to one or more issuers, offerors or persons applying for admission to trading, and which, if made public, would be likely to have a significant effect on the price of those crypto-assets or the price of a crypto-asset linked to them;
• for persons responsible for executing orders relating to crypto-assets, this also includes any specific information provided by a client relating to the client’s pending orders for crypto-assets, which relates, directly or indirectly, to one or more issuers, offerors or persons seeking admission to trading, or to one or more crypto-assets, and which, if made public, would be likely to have a significant effect on the price of those crypto-assets or the price of a crypto-asset linked to them.

2°) For the purposes of applying point 1°), an information is deemed to be specific if it refers to a set of circumstances that exists or may reasonably be expected to exist, or to an event that has occurred or may reasonably be expected to occur, and if it is sufficiently precise to allow a conclusion to be drawn as to the possible effect of that set of circumstances or that event on the price of crypto-assets. In this regard, in the case of a multi-stage process intended to give rise to, or resulting in, certain circumstances or a certain event, those future circumstances or that future event may be regarded as specific information, as may the intermediate stages of that process that are linked to giving rise to, or resulting in, such circumstances or such an event.

3°) An intermediate stage of a multi-stage process is deemed to constitute inside information if, in itself, that stage meets the criteria relating to inside information set out in this Article.

4°) For the purposes of point 1°), information which, if made public, would be likely to have a significant effect on the price of crypto-assets means information that a reasonable holder of crypto-assets would be likely to use as part of the basis for their investment decisions.

CHAPTER VI - FINAL PROVISIONS

Articles 56 to 60. Updating and repeal of legislative provisions that have become obsolete or are inconsistent with the new legislation.

Updates:

• Law No. 1.383 of 2 August 2011 on a Digital Principality, as amended : amendments to definitions (“virtual asset”, “crypto-asset”, “utility token”); amendment to the scope of the “digital safe service”; the inclusion of new definitions (“consensus mechanism”, “DLT network node”, “distributed ledger”); the repeal of definitions (“virtual financial asset”, “token”, “financial token”); the repeal of Article 48 defining a “digital asset deposit service on an electronic register”.
• Law No. 1,338 of 7 September 2007 on financial activities, as amended: a provision in Article 6 stating that Monegasque public limited companies (SAM) which are not credit institutions but which provide services relating to crypto-assets are authorised in accordance with the conditions laid down in this Law.
• Law No. 1.362 of 3 August 2009 on combating money laundering, the financing of terrorism and the proliferation of weapons of mass destruction, and corruption, as amended (LCB-FT-P-C): deletion of the list of entities subject to the requirement, namely "legal persons authorised to make an offer of tokens" referred to in the Article 2 of Law No. 1.491 of 23 June 2020 relating to token offerings"; replacement of the term "digital assets" with the term "virtual assets"; amendment to the list of regulated entities dealing in "virtual assets" or "crypto-assets", as follows:
  “24°) any person who, as a regular occupation, either acts as their own counterparty or acts as an intermediary, with a view to the acquisition or sale of virtual assets in exchange for legal tender;” "25°) any person who, as part of their regular occupation, either acts as their own counterparty or acts as an intermediary, with a view to exchanging virtual assets for other virtual assets;"
  "26°) any person who, as a regular occupation, carries out the activity of safekeeping and/or administering virtual assets on behalf of third parties, or providing access to virtual assets, where applicable in the form of private keys, for the purpose of holding, storing and transferring virtual assets;"
  "27°) any person who, as a regular occupation, participates in the provision of, or provides, financial services relating to an issuer’s offer and/or the sale of virtual assets;"
  "28°) any person who, as part of their regular occupation, transfers the ownership or control of virtual assets by carrying out a transaction on behalf of a third party, moving virtual assets from one address or account to another;"
  "28-1°) any person who, as a regular occupation, provides the service of receiving and transmitting orders relating to crypto-assets on behalf of clients;"
  "28-2°) any person who, as a regular occupation, provides crypto-asset portfolio management services;"" 28-3°) any person who, as part of their regular occupation, provides advice on crypto-assets;"
  " 28-3°) any person who, as part of their regular occupation, provides advice on crypto-assets."

Repeals:

• Law No. 1.491 of 23 June 2020 on token offerings, as amended, covering two types of fundraising: private or public Initial Coin Offerings (ICOs), and private Security Token Offerings (STOs) (procedures, supervision, sanctions, AML/CFT obligations);
• Title II (Articles 10 to 40) of the Law No. 1.528 of 7 July 2022 amending various provisions relating to digital technology and regulating the activities of service providers dealing in virtual assets or crypto-assets.