Monaco

According to Kepios, 97% of residents of Monaco had access to the internet in 2022. 

Although PSD2 – the European Directive that regulates electronic payment services – does not feature in Monaco’s Monetary Agreement linking the Principality of Monaco with the European Union, some of the big banks operating in the Principality have integrated it into their strategy and customer documentation. Open Banking is, therefore, not in law but still exists. As for blockchain, draft law number 237 calls for a 3-year trial period to test the applications of this technology in various sectors. The draft law, if voted into legislation, should provide an innovative legal framework for its development. Nevertheless, the question of its use for Open Banking remains unanswered in view of the new requirements brought about by the GDPR.

Monaco’s legislation is Fintech-friendly. The government sees cyberspace as a vector of growth.

According to the President of the World of Blockchains Monaco association, Monaco has the most blockchain-friendly bill in the world. Besides legal aspects, Monaco offers attractive grounds for Fintechs in terms of political and economic environments, including nearly zero taxation, as there is no hidden tax on payments from dividends, interest and royalties, which are not taxed. The VAT remains indexed on the French VAT at 20% but remains in the standard of the European countries. Monegasques and foreigners living and working in Monaco are not subject to any income tax, with the exception of French citizens.

No regulatory sandbox or light licensing has been implemented yet in Monaco.