Andorra is a small state between Spain and France. It is integrated into the economy of the Eurozone countries. It is popular as a low-tax jurisdiction. Cryptocurrency in Andorra is legally defined in the legislation.
Country overview
#56
AndorraCountry stats
Rating Points
228
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
2%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
0
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
180
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
1 500
Total amount of crypto users out of the country's total population based on public data.
Taxation points
37
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
0
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Legally allowed
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Safe place
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
No info
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Cryptofund
This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Good
Medium
Bad
Andorra has a safe place security level according to our rating. Homicide level (1) is 2.6 per 100,000 inhabitants a year.
According to the local media (2), the Digital Asset Act allows crypto payments:
The AFA will control the sector The text envisages that it will be the AFA that distributes the necessary licenses to issue these digital assets and for this reason, it has asked for more resources.
The state will be able to finance itself with virtual money. The executive will have the power to create "sovereign digital money" to, among other uses, finance itself as if it were a traditional bond issue.
Citizens will be able to pay with cryptocurrencies
More information about crypto payments status in Andorra you can find here (3).
We have no information about the payment of salaries in cryptocurrency in Andorra.
In Andorra, cryptocurrencies are regulated (4) by the Electronic Trust Act and Digital Asset Act (Act 24/2022) approved in June of 2022. All VASPs like exchange platforms, wallets, and token issuers should register by AFA.
The Act provides (5) a comprehensive regulatory framework for digital assets and blockchain technology in the country, including provisions governing the taxation of digital assets or digital currencies. The implementation of blockchain and cryptocurrencies in Andorra will ultimately occur in two parts. In conjunction with the appointment of the OCIC, reporting entities (VASPs) must (6) appoint a representative to the UIFAND and inform the UIFAND by the submission of the Appointment of the OCIC and the representative to the UIFAND form.
Andorra makes (7) it possible to carry out crypto mining and it has the exceptional internet speed and low latency, and also relatively cheap electricity.
The basic personal income tax rate in Andorra is (8) 10% for resident individuals and CIT rate is also 10$. Andorra has one of the world's lowest capital gains tax rates, averaging around (9) 10%.
1)👉🏻List of countries by intentional homicide rate
2)👉🏻La llei de les criptomonedes preveu que Govern creï una moneda virtual. Article
3)👉🏻 Global Legal Insights: Andorra
4)👉🏻New law governing digital assets and blockchain in Andorra. Article
5)👉🏻Andorra: Digital Assets Act – Legislation. Article
6)👉🏻VIRTUAL ASSETS SERVICE PROVIDER
7)👉🏻Bitcoin & Cryptocurrencies in Andorra. Article
8)👉🏻Andorra Tax Rates. Article
9)👉🏻Capital Gains Tax in Andorra. Article