Self-custodial wallet / non-custodial software in Monaco
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is conditionally permitted in Monaco without local incorporation, subject to AML obligations and low licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- No
- Licensing burden
- Low
- Last updated
- 2026-07-13
AML Obligations
- If the software publisher merely provides non-custodial software without holding, controlling, or accessing user private keys or funds, they likely do not qualify as a 'custody provider' under MC law (which covers 'safekeeping or administration of virtual assets or instruments enabling control over virtual assets (e.g., private keys) on behalf of clients'). Pure software publication without ongoing custody/service may fall outside VASP classification.
- If the operator does not engage in exchange, transfer, or custody on behalf of clients, AML obligations such as CDD, ongoing monitoring, record-keeping, STR, risk assessment, and internal controls (per Loi n° 1.362 and Ordonnance Souveraine n° 8.182) do not attach.
- If the software includes any intermediary services (e.g., integrated swap/on-ramp where the publisher handles assets), the entity would be a VASP requiring registration with SICCFIN and subject to full AML/CFT obligations.
Key Restrictions
- The publisher must not hold, control, or have access to user private keys or funds — doing so would trigger VASP classification as a custody provider.
- If any integrated financial services are provided (e.g., in-wallet exchange, fiat on-ramp processing), those specific activities may require separate licensing or registration.
- The software must be distributed as pure infrastructure/tooling; the publisher cannot act as an intermediary in any transaction involving virtual assets.
Key Risks
- Regulatory ambiguity: Monaco's definitions of VASP activities (exchange, custody, transfer) may be interpreted broadly — a software publisher offering built-in connectivity to third-party protocols could be viewed as facilitating virtual asset services.
- Non-face-to-face relationship risks: If the publisher operates any hosted service layer (e.g., remote signing infrastructure), it may be deemed to provide custody or administration of instruments enabling control over private keys.
- Monaco is identified as a high-risk third country by the EU and under FATF increased monitoring — operating from or targeting Monaco residents carries enhanced scrutiny and counterparty risk.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Custody Providers (Virtual Asset Service Providers - VASP):
Scope: This includes entities that provide safekeeping or administration of virtual assets or instruments enabling control over virtual assets (e.g., private keys) on behalf of clients.
Requirement: Registration with SICCFIN for AML/CFT purposes.
Ordonnance Souveraine n° 8.182 du 10 mars 2021 portant modification de l'ordonnance souveraine n° 2.318 du 3 août 2009 d'application de la loi n° 1.362 du 3 août 2009 modifiée, relative à la lutte contre le blanchiment de capitaux, le financement du terrorisme et la corruption, modifiée (Sovereign Ordinance No. 8.182 of March 10, 2021 amending Sovereign Ordinance No. 2.318 of August 3, 2009 implementing Law No. 1.362 of August 3, 2009, as amended, on the fight against money laundering, terrorist financing, and corruption)
Monaco is itself identified as a high-risk third country by the EU and is under increased monitoring by the FATF
Exchanges (Virtual Asset Service Providers - VASP):
Scope: This applies to platforms facilitating the exchange between virtual assets and fiat currencies, and between one or more forms of virtual assets.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- low
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — A pure self-custodial software publisher that never holds, controls, or accesses user private keys likely does not qualify as a VASP in Monaco and faces no licensing or AML obligations, but any integrated intermediary services (swap, on-ramp, custody) or ambiguity in the definition of "instruments enabling control" could trigger VASP classification and registration with SICCFIN.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?