The Andorran government has also sought technical help from the International Monetary Fund (IMF) to improve its Bitcoin transaction tracking devices.
Cryptocurrencies are often used to execute transactions that are not recorded in the formal economy, thus making it hard to measure the contribution of cryptocurrency transactions to the national revenue.
Andorra requested help in drawing up and maintaining transaction records in the Bitcoin system and IMF complied. In September 2023, an IMF delegation visited Andorra to check its capital and current account data. The main aim of the mission was to ensure that the transactions were properly recorded among Andorran residents and non-residents.
Although ski resorts are synonymous with Andorra and its designation as a guarantee against income tax and wealth tax, the country is lagging behind in the key field of tracking crypto transactions. The AFA stipulated that banks shall register to UK Anti-Money Laundering Rules (AML) to monitor Bitcoin transfers; however, none have done that yet.
The IMF was of the view that by September 2024 Andorra should implement money laundering and terrorist financing preventive measures, particularly in the cryptocurrency transactions. This direction provides ideas for Andorra in handling the crypto assets and transactions so that corresponding macroeconomic censuses may be correlated.
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