The country’s government recently passed the Digital Assets Law, which will function as a regulatory framework for digital currencies and blockchain technology.
The law is divided into two parts. The first concerns the creation of digital money, which can be exchanged in a closed system. This would allow you to create your own token.
The second refers to digital assets as financial instruments, and aims to create an environment in which blockchain technology can be regulated.
The result they are trying to achieve is to attract new companies to settle in the country, offering some legal clarifications that make it easier and more transparent. They see this as a way to attract talent and entrepreneurs to the new economy.
Andorra could adopt a Bitcoin standard, mining Bitcoin with renewable energy, taking Bitcoin as a reserve asset, and welcoming Bitcoin-focused businesses from around the world.
The national newspaper Diari d’Andorra reported that the Digital Assets Law is a step to “make cryptocurrencies an everyday reality.”
Andorra is Bitcoin friendly:
Mining and electricity is cheap. If you dedicate yourself to financial consulting, the same: quite friendly and with a low tax rate. If you want to run an exchange, it can be a bit difficult to find a bank that will work with you; the government itself wouldn’t care.
In May, Andorran Minister Jordi Gallardo mentioned that blockchain was one of the main areas of investment for the small country. However, it is unclear whether the minister was referring to Bitcoin or research into distributed ledger technologies that underpin blockchains.
Andorra is one of the few European countries outside the jurisdiction of the European Parliament. In fact, in many ways it could be comparable to Switzerland on a smaller scale.
Andorra is very attractive for entrepreneurs thanks to its low taxes, but Switzerland has a great advantage when it comes to promoting the development of activities around Bitcoin and cryptocurrencies in general. This could change in the coming years thanks to this text of laws that frames the activities of Bitcoin and blockchain.