Several lawmakers in Monaco have introduced a bill recently approved that creates a legal foundation for blockchain data, including cryptocurrencies and smart contracts : http://www.conseil-national.mc/index.php/textes-et-lois/propositions-de-loi/item/600-237-proposition-de-loi-relative-a-la-blockchain.
Monaco will become one of the first states, not to say the first state to recognize cryptocurrencies like Bitcoin or Etherum. By enacting this new legislation, Monaco aims to be seen as a blockchain friendly state.
Bill 237 introduces multiple stipulations that blockchain ledgers crypto-currencies and smart contracts be treated as legally-binding methods of data storage.
Notably, the bill states that a « record of a contract in a blockchain ledger is deemed to be the binding faithful lasting copy of the original, ensuring it is valid as such date”
The bill also provides a period of 3 years to test the applications of blockchain.
A special agency, l’Autorité Monégasque des Blockchain (AMB) is created with the purpose to promote the blockchain applications. It will supervise any test and may issue recommendations intended to the government.
A sovereign ordinance is expected for the sake of implementation.
One of the main issues will be to assess the impact of this new law. Recognition of cryptocurrencies under the Monegasque law may conflict with current supervision of banks by the French regulator ACPR.
It will be one of the challenges of 2018 for the banking and financial sector, along with PSD 2 and GDPR that for sure will substantially will affect the business model of the local players.