How to start the authorization request in the field of digital assets.

If you want to know how to apply for authorization in the field of digital assets, this article explains everything you need to know—so take note!

Entities operating in Andorra in the field of digital assets must request authorization from the Andorran Financial Authority (AFA) for those activities required by Digital Assets Law 24/2022. But how do you carry out this process?

First, and before initiating any procedure, a Digital Observer must be appointed, as established by the Digital Assets Law and Decree 478/2022 of November 23, 2022, which approves the regulation on the requirements to serve as a digital observer, their obligations, and the disciplinary and sanctioning regime.

• Digital Observer? Let’s start by defining this figure

A digital observer is a natural or legal person who, in accordance with the Digital Assets Law, is entrusted with the role of administrative liaison with the Andorran Financial Authority (AFA) in authorization requests for activities related to the digital representation of assets, whether through a license application to start operations or a regularization process, as well as other functions defined by regulation.

The individual registered as either a digital observer or representative must be a licensed lawyer or economist, as provided by the Digital Assets Law.

• How can I find out who the registered Digital Observers in Andorra are?

It’s very easy to find out who the registered digital observers in Andorra are. The register is public, and the Andorran Financial Authority (AFA) allows public access via its website. The AFA must maintain an up-to-date register of digital observers that includes, at minimum, information on the registration number, name or corporate name, address, type, and, where applicable, the representative if the observer is a company.

However, as of today, there is still no official list of observers, although the third transitional provision of the Digital Assets Law sets a three (3) month period for its creation.

• And from when can I apply for authorization in the digital asset sector?

The Law limits the submission of new authorization requests to the moment when the Digital Observer Registry is created. No new requests can be submitted before the registry is established.

However, in the specific case of digital observers, license applications can already be submitted to the Andorran Financial Authority (AFA). In the following link, you can consult the procedure for establishing this figure on the AFA's website: Observers — AFA – Andorran Financial Authority.

Need help or have questions about the application of the Digital Assets Law and its regulatory framework? Our team can assist you. If you have any questions or need clarification, feel free to contact us.