Andorra is moving towards a financial system with greater control over digital transactions. On August 12, 2026, the government approved two bills that extend anti-money laundering obligations to virtual asset transfers and update rules on market abuse.
The measure is not yet a fully applicable law: these are draft bills and will have to go through the corresponding procedures before their final approval and entry into force. The text points to a greater emphasis on traceability and information regarding certain operations.
Key data
- August 12, 2026: Approval of the two bills.
- 2 laws amended to update the Andorran financial framework.
- Regulation (EU) 2023/1113: European reference incorporated into one of the reforms.
What has the Government of Andorra approved against money laundering?
The reform affects two legal texts. The first modifies the law on the prevention and fight against money laundering and the financing of terrorism. Its main objective is to extend to transfers of virtual assets obligations that until now only applied to transfers of funds.
The second bill amends the law governing the organization and operation of financial system entities and the rules related to market abuse. It includes changes to the prevention of such abuses, the management of inside information, and certain administrative obligations of financial institutions.
The short answer is this: Andorra is strengthening the fight against money laundering in Andorra by expanding controls on virtual asset transfers and bringing its rules on financial markets closer to European provisions.
The news report refers to draft bills, not obligations already enforceable for all operators. The final content, parliamentary process, and effective date will determine the scope of the new rules.
Why Andorra is updating its financial regulations in 2026
The Government links the reform to the updating of the Andorran financial regulatory framework and its adaptation to the latest European provisions on the prevention of money laundering, terrorist financing and market abuse.
The reform also aims to strengthen the traceability of operations and facilitate the detection and investigation of possible illicit activities in a context marked by the digitalization of the economy.
The text takes as its reference point the Regulation (EU) 2023/1113, whose provisions are incorporated into the Andorran legal system through the first amendment.
With the approval of the two projects, the Government states that it seeks to strengthen the solidity and competitiveness of the Andorran financial system and advance in regulatory harmonization with the European Union.
What is the relationship between this reform and the European Union?
Andorra is not a member state of the European Union. In this case, the government has introduced changes to incorporate certain European provisions on virtual asset transfers and market abuse into Andorran law.
Adaptation does not mean that all European regulations will automatically apply in Andorra. Actual application will depend on the final text approved in the country.
New controls on virtual asset transfers
The most visible change is the expansion of existing obligations regarding fund transfers. The reform also includes provisions for... virtual asset transfers, with the aim of improving the traceability of operations and facilitating the detection of possible illicit activities.
The bill establishes new obligations for virtual asset service providers. The specific scope of these obligations will depend on the final text and the provisions that become applicable after its approval.
The source does not indicate that virtual assets will be banned. The project focuses on expanding prevention and monitoring obligations to include transfers of these assets within the relevant regulatory framework.
What are virtual asset transfers?
These are transactions in which virtual assets are transferred between participants. The reform incorporates them into the framework of obligations that already applied to certain fund transfers.
The measure aims to improve the traceability of these transactions and make it easier to detect and investigate potential illicit activities. The source does not specify all the data that must accompany each transfer, so it is unwise to present a definitive list before the final wording is known.
What information might be relevant?
The information required to track a transaction will depend on the obligations established in the final text. The source confirms that the reform aims to strengthen traceability, but does not detail all the documentary requirements applicable to each transfer.
What obligations will virtual asset service providers have?
The project establishes new obligations for virtual asset service providers. Its aim is to strengthen the monitoring of transactions and facilitate the detection and investigation of potential illicit activities.
Companies that provide services related to virtual assets will need to analyze the final text to determine which specific obligations apply to them and from what date. Until the reform comes into effect, the exact content of its compliance procedures cannot be anticipated.
The practical application will depend on the type of service and the scope established by the approved standard. Therefore, these companies can review their current processes and follow the legislative process to prepare for any necessary changes.
Who is affected by the new crypto asset regulations?
Primarily, this applies to virtual asset service providers and the operations covered by the reform. The source does not specify whether all activities related to these assets will be subject to the same rules.
Companies working with financial technology or blockchains should review what services they provide and check how they fit into the final text when it is published.
Changes in the prevention of market abuse
The second reform incorporates new provisions from European regulations on market abuse. The bill updates the rules for preventing such conduct and modifies the management of inside information.
It also simplifies certain administrative obligations for financial institutions, while maintaining guarantees of transparency and investor protection.
What is insider information?
Inside information is a type of information that entities must manage in accordance with the rules applicable to financial markets. The reform updates these rules, although the source does not detail the content of each change.
What does the reform mean for banks, technology companies and businesses in Andorra?
Financial institutions will have to analyze the final text to understand how the modifications affect their internal procedures, especially regarding market abuse, insider trading, and administrative obligations.
Technology and financial services companies will have to determine whether their activities fall under the new obligations for virtual asset service providers. The specific services they provide and their role in transactions will be key factors in this determination.
The specific burden for each company will depend on its business activities and the final regulation. While the process is underway, it may be helpful to identify transactions related to virtual assets and review the available documentation on them.
The Government presents the reform as a measure to strengthen the solidity and competitiveness of the Andorran financial system and advance its regulatory harmonization with the European Union.
What should cryptocurrency investors and users do?
The source does not announce a ban on virtual assets. The reform aims to extend prevention and traceability obligations to their transfers when they fall within the scope of the regulation.
Users can retain documentation related to their transactions and consult with the relevant provider about what information might be required when the reform takes effect. The exact requirements will depend on the final text.
The tax and regulatory consequences depend on the circumstances of each individual or company. In significant transactions, it is advisable to seek professional advice before proceeding.
Impact for those who want to live, invest or start a business in Andorra
For residents, investors, and businesses, these changes are part of a financial framework that the government aims to align with European regulations. The specific implications will depend on the activity and the final wording of the laws.
Companies involved in financial services or virtual assets should gather information about their activities and analyze whether the draft legislation imposes new obligations on them. This review will be especially important for professional virtual asset service providers.
Does the reform make it harder to settle in Andorra?
The approval of these projects does not mean that it will prevent people from residing, investing, or starting a business in Andorra. It does, however, introduce changes to anti-money laundering obligations, the traceability of virtual asset transfers, and rules on market abuse. The specific impact will depend on the activity and the regulation that is ultimately approved.
Conclusion: More traceability and financial convergence for Andorra
The two projects approved on August 12, 2026, move in two directions: expanding controls on virtual asset transfers and updating rules against market abuse. Their stated aim is to strengthen prevention, traceability, transparency, and investor protection.
Now we must wait for the final text and its entry into force to know the exact obligations of each operator. In the meantime, companies can identify how their activity affects them and review the documentation related to their operations.
In Andorra Insiders We can help you analyze the practical implications of the reform for your situation: regulatory compliance, banking, taxation and company formation in Andorra.
Frequent questions
What has changed in the fight against money laundering in Andorra?
The Government has approved a reform project that extends to virtual asset transfers the obligations that already applied to fund transfers and strengthens the traceability of operations.
Does Andorra's new legislation prohibit cryptocurrencies?
The source does not announce a blanket ban. The bill extends prevention and traceability obligations to virtual asset transfers that fall within its scope.
Who is affected by the new rules on virtual assets?
Primarily, this applies to virtual asset service providers and the operations included in the reform. The exact scope will depend on the final text.
Are the new obligations already in effect?
The news report indicates the approval of the bills. To learn when they will come into effect and the specific requirements, we will have to wait for the legislative process, final approval, and publication.
How does this reform affect a company that wants to establish itself in Andorra?
Companies related to financial services or virtual assets will have to review the final text to determine if they are affected by new obligations regarding prevention, traceability, or information management.
Sources
- Andorra governmentInformation on the approval of bills.
- Regulation (EU) 2023/1113, European regulatory source cited in the reform.
