Andorra Receives Technical Assistance From IMF on Bitcoin Transactions
Andorra received IMF guidance on recording and tracking Bitcoin transactions on March 13, following an official request for technical assistance from the European nation.
In September 2023, the IMF conducted a technical assistance (TA) visit to Andorra – a country bordering France and Spain.
The visit sought to improve the nation’s balance of payments data. The key parameter involved recording economic interactions between residents and non-residents.
Andorra is known for its tax haven and ski resorts. Regardless, the country is facing challenges on several fronts. One of the many issues is its inability to record and track crypto transactions.
To get ahead of the issue, the Andorran Financial Authority (AFA) directed banks to apply for authorization to track Bitcoin and other crypto transactions. The country’s financial watchdog informed the IMF that no banks had taken the step to obtain permission, however.
Meanwhile, the IMF delegation reportedly explained the latest crypto-assets guidelines and the possible evolution of the next generation of international standards.
In this light, the IMF has charged Andorra to track Bitcoin and other crypto transactions. The financial body suggested that the AFA regulate crypto asset holdings and transactions until September 2024.
Andorra has tried to take steps towards crypto adoption in the past. But, this guidance from the IMF would enable the country to generate data that will be useful in compiling its macroeconomic statistics.
Many small countries are enthusiastic about joining the wave of mainstream digital assets by implementing Central Bank Digital Currencies (CBDCs). The IMF has particularly advised Pacific Island Countries (PICs) to delay such plans, however.
In its recent
Read more on cryptonews.com
