Is crypto legal in Andorra? Rules & regulation (2026)

Legal framework

Law 24/2022 of 30 June on the digital representation of assets through cryptography, distributed ledger technology and blockchain (in force since 20 October 2022), supervised by the Andorran Financial Authority (AFA); AML/CFT under Law 14/2017 as amended by Law 37/2021.

Status by sub-area

• Stablecoins

  In force

  Law 24/2022 expressly covers stablecoins as private collateralized tokens, providing a framework for the collateral/reserve assets that can back them; issuance requires AFA authorization with documentation on the legal link to the underlying assets.

• Exchanges / VASP

  In force

  Digital-asset trading platforms and service providers must be licensed by the AFA, meeting minimum capital, civil-liability insurance, fit-and-proper management, technology-security and AML/CFT requirements, plus appointment of a registered digital overseer.

• Token Offerings

  In force

  The law sets clear procedures for issuing utility, security and stablecoin tokens, distinguishing public from private issuance; issuers must file detailed documentation with the AFA on operation, legal link to the underlying, issuance conditions and system security.

• Custody

  In force

  Custodians of digital-asset representations are a regulated category requiring AFA authorization, with requirements on technological security, auditability of the distributed register, protection against operational failures, capital and insurance.

• DeFi

  Partial

  Law 24/2022 explicitly addresses decentralized ecosystems and new forms of decentralized financing (DeFi), as well as smart legal contracts; DeFi platforms operating in Andorra are expected to obtain AFA licensing, though detailed secondary rules continue to develop.

  Still pending: DeFi platform AFA licensing requirements and implementing secondary rules still in development

• Tax

  In force

  Crypto gains are taxed under personal income tax (IRPF) as capital gains at a maximum 10% rate, with an annual exemption around the first €3,000 of gains; crypto-to-crypto swaps are generally not taxable events while conversions to fiat are. Andorra has no wealth tax.

Key points: crypto & digital assets in Andorra

1. 01Dedicated digital-assets law in force

   Law 24/2022 of 30 June regulates the digital representation of financial and non-financial assets via cryptography, DLT and blockchain; it was published in the BOPA on 20 July 2022 and entered into force on 20 October 2022.

   leslleis.com globalvatcompliance.com

2. 02AFA authorization required

   Any entity issuing, holding or trading digital assets must obtain express authorization from the Andorran Financial Authority (AFA), subject to review of business model, technology, fit-and-proper administrators, financial capacity, minimum capital and civil-liability insurance.

   fintaxandorra.com andorranbanking.ad

3. 03Token taxonomy

   The law defines categories including utility tokens, security tokens, stablecoins (private collateralized tokens) and sovereign digital money (DDSP, programmable currencies issuable by a competent authority/central bank), each with its own legal regime.

   leslleis.com andorranbanking.ad

4. 04Digital overseer (veedor digital)

   Licensed participants must appoint a registered 'digital overseer', a natural person who is a lawyer or economist registered in Andorra (or a legal entity with such a representative) acting as supervisory liaison with the AFA.

   fintaxandorra.com advantia.ad

5. 05AML/CFT coverage

   Digital-asset activity is brought within Andorra's AML/CFT regime under Law 14/2017 of 22 June, materially amended for digital assets by Law 37/2021 of 16 December.

   fintaxandorra.com

6. 06Outside EU MiCA, standalone national regime

   Andorra is not an EU member, so the EU's Markets in Crypto-Assets Regulation (MiCA) does not apply or grant passporting; Law 24/2022 is a self-standing national framework aligned with international AML/CFT standards.

   metlabs.io esma.europa.eu

Timeline of decisions

1. 9 Mar 2025Guidance
   Andorran Public Prosecutor Raises Alarm Over Crypto Surge

   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.

   Diari Andorra

2. 1 Jan 2024Decision · official
   UIFAND Launches Sectoral Risk Review of Andorra's Virtual Assets Ecosystem

   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.

   UIFAND – Financial Intelligence Unit of Andorra

3. 20 Jan 2023Decision · official
   AFA Opens Digital Asset Licence Applications Under Law 24/2022

   From 20 January 2023 the AFA accepted the first authorisation applications from entities wishing to operate in digital assets, requiring each applicant to be channelled through a licensed digital overseer, the operational launch of the Law 24/2022 framework.

   AFA – Andorran Financial Authority

4. 1 Jan 2023Law
   AFA Establishes Regulatory Sandbox for Digital Assets and Blockchain

   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.

   Chambers & Partners – Blockchain 2024, Andorra

5. 1 Dec 2022Law · official
   Law 42/2022: Digital Economy, Entrepreneurship and Innovation Law

   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.

   Portàl Jurídic d'Andorra (official legal portal)

6. 30 Jun 2022Law · official
   Law 24/2022: Andorra's Landmark Digital Assets and Blockchain Act

   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.

   Portàl Jurídic d'Andorra (official legal portal)

7. 16 Dec 2021Law · official
   Law 37/2021 Brings Virtual Asset Service Providers into AML/CFT Framework

   Amendment to the base AML/CFT law (Law 14/2017) expressly added VASPs, crypto exchanges, custodians, transfer services and token issuers, as obliged entities under UIFAND supervision, aligning Andorra with FATF Recommendation 15 ahead of the full digital asset licensing law the following year.

   FATF – Follow-up Report: Andorra 2021

8. 16 Dec 2021Law · official
   Law 37/2021: VASPs Formally Added to Andorra's AML/CFT Regime

   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.

   Portàl Jurídic d'Andorra (official legal portal)

9. 1 Jan 2017Decision · official
   MONEYVAL 5th Round Mutual Evaluation Report on Andorra

   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.

   MONEYVAL / Council of Europe

Sources

1. 1.leslleis.com/L2022024
2. 2.globalvatcompliance.com/globalvatnews/andorra-digital-assets-act/
3. 3.andorranbanking.ad/en/aba_topics/digital-assets-blockchain/
4. 4.fintaxandorra.com/post/andorra-blockchain-cryptocurrency-law-approved
5. 5.advantia.ad/en/economy/digital-assets-law-andorra
6. 6.fintaxandorra.com/post/andorra-tax-treatment-on-cryptocurrencies
7. 7.metlabs.io/en/blockchain-regulation/andorra/
8. 8.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets