The Andorran government has also requested technical assistance from the International Monetary Fund (IMF) to improve its Bitcoin transaction tracking systems.
Cryptocurrencies are frequently used to carry out transactions that are not recorded in the formal economy, making it difficult to determine the contribution of bitcoin transactions to national revenue.
Andorra requested assistance in creating and keeping transaction records in the Bitcoin system, and the IMF responded. An IMF mission visited Andorra in September 2023 to review the country’s capital and current account data. The primary goal of the mission was to ensure that all transactions between Andorran residents and non-residents were properly recorded.
Although ski resorts are synonymous with Andorra and its status as a tax haven, the country lags behind in the critical area of tracking cryptocurrencycurrency transactions. The AFA required banks to register with UK Anti-Money Laundering Rules (AML) to monitor Bitcoin transfers; however, none have yet done so.
The IMF believed that by September 2024, Andorra should have implemented money laundering and terrorist financing prevention measures, particularly in cryptocurrencycurrency transactions. This direction presents Andorra with options for managing cryptocurrency assets and transactions in order to correlate macroeconomic censuses.