Financial Crime World

Monaco Tightens Grip on Cryptocurrency Regulations: What You Need to Know

The Principality of Monaco has taken a significant step towards regulating its cryptocurrency market by issuing innovative VISA cards that allow users to transfer and spend non-fiat funds. In this article, we’ll explore what you need to know about the new regulations and how they affect businesses operating in the crypto space.

Regulatory Framework

According to the Financial Supervisory Commission, work with crypto assets is operational throughout Monaco’s territory exclusively within the framework of current legislation, without special regulation. However, the regulator emphasizes that this activity carries high risks due to the lack of guarantees.

Licensing Requirements

To operate in Monaco’s cryptocurrency market, companies must obtain a license from the authorities. The process involves several steps:

  • Step 1: Opening a Local Company - Companies must open a local company in Monaco.
  • Step 2: Data Collection - Companies must collect data about founders, management, and beneficiaries.
  • Step 3: Work Plan and Policies - Companies must develop a work plan and policies for the company, including compliance issues.
  • Step 4: Registration and Fees - Companies must register and form a package of documents for registering a cryptocurrency exchange license in Monaco, paying relevant fees.
  • Step 5: Submission and Follow-up - Companies must submit their package of documents for registration and provide further details on request.
  • Step 6: License Approval - In case of approval, companies will obtain a license.

Anti-Money Laundering (AML) Regulations

In addition to obtaining a license, companies must also comply with AML regulations. This requires:

  • Risk Assessment - Companies must assess risks associated with their operations.
  • Transaction Records - Companies must keep records of “suspicious” transactions.
  • Law Enforcement Notification - Companies must notify law enforcement authorities about suspicious transactions.

Compliance Requirements

To ensure compliance, companies must:

  • Develop Internal Policies - Companies must develop internal policies for working with crypto assets.
  • Authorized Personnel - Companies must appoint authorized personnel to manage their operations.
  • Monitoring and Record-Keeping - Companies must monitor their operations and keep records of customer data.
  • Suspicious Transaction Identification - Companies must identify suspicious transactions and notify regulatory authorities.

Expert Assistance

Prifinance offers expert assistance in obtaining a cryptocurrency exchange license in Monaco, as well as support for launching and operating a business in the principality. With its comprehensive range of services, Prifinance can help entrepreneurs navigate the complex regulatory landscape and launch their businesses without worrying about compliance issues.