Crypto Regulations in Monaco
The Commission de Contrôle des Activités Financières (CCAF) warns the public that crypto-assets (such as Bitcoin, Ethereum, Ripple, Monoeci etc.), commonly referred to as “virtual currencies” or “cryptocurrencies” do not qualify as currencies and are not subject to a specific regulation. These crypto-assets are not legal tender and are not a means of exchange whose value is guaranteed by a Central Bank. Similarly, a public offering to raise funds in the form of an Initial Coin Offering (ICO) is not subject to specific regulations and does not benefit from any guarantee. Crypto-assets subscription bears a number of risks such as the complete loss of invested funds, the lack of liquidity, the volatility risk, the lack of protection, and the risk of theft, fraud, and/or money laundering.
Source: AMAF
The Commission de Contrôle des Activités Financières (CCAF) warns the public that crypto-assets (such as Bitcoin, Ethereum, Ripple, Monoeci etc.), commonly referred to as “virtual currencies” or “cryptocurrencies” do not qualify as currencies and are not subject to a specific regulation.
Source: AMAF
Finally, the Act introduces the notions of “digital asset”, “token” and “private or public key” into Monegasque law. It should be noted in this respect that Act No 1.482 of 17 December 2019 for a Digital Principality is a general text which includes definitions that will serve as a basis for specific legislation that may be introduced in the future, such as Bill No 995 relating to Blockchain technology.
Source: CMS
In a decision dated 22 October 2015, the ECJ defined Bitcoin as a means of payment. Exchanging Bitcoin for fiat money may fall within the scope of the VAT exemption set out in Article 135 of the VAT directive 2006/112/EC. Exchanging ICO tokens for other cryptocurrencies or fiduciary currencies could also constitute a VAT-exempt operation pursuant to the same directive. Singapore seems to have taken an opposing position, viewing cryptocurrencies and token sales as the provision of a service subject to VAT.
Source: Monaco for Finance
In controlling FinTech business, Monaco relies on European directives and the principles of its closest neighbor – France (as well as in dealing with a wide range of other financial and legal issues). Therefore, to license a crypto-exchange, an exchanger, or a supplier of virtual financial products/services you will need to open a company in the principality. When registering a company or acquiring an existing business, you will need to contact the government – it issues permits and consent to the owner change. The share capital of the organization establishing (partnerships, companies with limited liability, joint-stock companies, etc.) must be at least 150 thousand euros.
Source: Private Finance
Monaco Crypto Summit offers a look at the emerging Web 3.0 giant metaverse As crypto gains popularity, people are wondering what the future holds for blockchain-based currencies and technologies, especially investors. During Monaco Crypto Summit, investors and blockchain users alike got a first-hand glimpse at upcoming innovations and trends in crypto and the metaverse.
Source: siliconANGLE
The couple were not charged in the Bitfinex hack itself, during which a hacker was able to initiate more than 2,000 unauthorized bitcoin transactions. About $71 million in stolen bitcoin — valued today at more than $4.5 billion — was transferred to an outside digital wallet, officials said. Investigators using what Monaco described as “old-fashioned police work” found a wallet containing more than 2,000 bitcoin accounts and followed the trail to accounts at a dark web criminal marketplace called AlphaBay that was dismantled by the Justice Department in 2017.
Source: Los Angeles Times
Not Available
To date, in Monaco, no regulatory sandbox or light licensing has been implemented yet. One should however note that requirements are lighter for a “payment institution” license than for a full banking license.
Source: CMS
