Is crypto legal in Andorra? Regulation & rules (2026)

The Fiscalia (public prosecutor's office) publicly warned that virtual-asset transactions in Andorra totalled over $1.8 billion between February 2023 and January 2024 — exceeding half of national GDP — and flagged heightened money-laundering and tax-evasion risks requiring enhanced enforcement attention.

Andorra's Financial Intelligence Unit (UIFAND) initiated a formal risk assessment of the virtual-assets sector using FATF/World Bank methodology, responding to rapid domestic growth in crypto activity and international pressure to validate AML/CFT controls across the entire VASP population.

The Andorran Financial Authority (AFA) created a supervised sandbox environment allowing blockchain and digital-asset firms to test products under reduced regulatory requirements, complementing Law 24/2022 and stimulating fintech innovation without full licensing burden during early-stage development.

This companion statute to Law 24/2022 introduced tax measures for the digital economy, confirming that crypto capital gains are subject to personal income tax (IRPF) at up to 10%, and providing incentives for digital and blockchain enterprises establishing in Andorra.

The General Council enacted Law 24/2022 on the digital representation of assets via cryptography and distributed ledger technology — the centrepiece of Andorra's crypto framework. It classifies token types (utility, security, stablecoin, payment), requires AFA licensing for issuers and service operators, mandates capital requirements, investor-protection rules, and appointment of a registered 'digital overseer.' Published in the BOPA official gazette on 20 July 2022; entered into force October 2022. Crucially, full use of crypto as general-purpose currency was explicitly deferred pending further development.

This amendment to Law 14/2017 expressly classified Virtual Asset Service Providers — exchanges, custodians, transfer services, and token issuers — as regulated obliged entities under Andorra's AML/CFT statute, requiring KYC, beneficial-owner identification, and suspicious-transaction reporting to UIFAND. This aligned Andorra with FATF Recommendation 15 and the EU 5th Anti-Money Laundering Directive, and was a prerequisite for the broader Law 24/2022 framework enacted the following year.

Andorra enacted its primary anti-money laundering and counter-terrorist financing statute, transposing EU AML standards pursuant to the Andorra–EU Monetary Agreement. It created UIFAND as an independent financial intelligence unit with powers to inspect, sanction, and refer cases to prosecutors. This law, subsequently amended in 2021 to cover VASPs, forms the AML backbone of Andorra's entire virtual-asset supervisory architecture.

The Council of Europe's MONEYVAL committee published its 5th-round mutual evaluation of Andorra's AML/CFT framework, identifying structural gaps and compliance shortfalls that directly drove Andorra's legislative response — including the 2017 primary AML statute and the 2021 VASP amendments — and established the benchmark against which Andorra's virtual-asset oversight is still periodically assessed.