A Digital Overseeris an authorised intermediary that acts as a liaison between digital asset operators and the Andorran Financial Authority (AFA), in accordance with Law 24/2022 of 30 June on the digital representation of assets using cryptography and distributed ledger and blockchain technology and Decree 478/2022, of November 23, which regulates the requirements, obligations, and disciplinary regime of the Digital Overseer. At Virtus Advocats, we offer this service to manage the necessary licenses and ensure regulatory compliance for activities such as issuing digital assets, managing and safeguarding assets on behalf of third parties, executing digital asset orders, and providing financial services related to the creation of digital assets. We also conduct ongoing compliance monitoring, including tracking fee payments before each fiscal year, and we prepare annual and periodic reports assessing regulatory compliance, risks, and the measures implemented to protect investors.

We are registered in the AFA’s Registry of Authorised Entities with registration number VDR-008.

In Andorra, under Law 24/2022, of June 30, on the digital representation of assets using cryptography and distributed ledger and blockchain technology, all entities and individuals wishing to carry out activities related to digital asset representation must have an authorised Digital Overseer. This applies to licensed activities such as issuing digital assets, managing and safeguarding assets on behalf of third parties, executing digital asset orders, and facilitating financial services related to digital asset generation. An authorised Digital Overseer facilitates the relationship with the Andorran Financial Authority (AFA), ensuring that all activities are carried out in compliance with current regulations. This provides safety and confidence for both operators and investors, minimising legal risks and ensuring a transparent and efficient process.

The process for requesting a license from the Andorran Financial Authority (AFA) begins with receiving the application, where we assess the type of license, registration, or communication required. We review the necessary documentation and perform client verification checks, including gathering KYC documents and signing confidentiality agreements (NDAs).

Once this stage is complete, we submit the application to the AFA. This submission typically takes about 1 month, depending on the project's complexity and documentation completeness. The AFA and the Financial Intelligence Unit of Andorra (UIFAND) then evaluate the application, and the approval process can take up to 5 months. During this period, additional information may be requested, with response deadlines of up to 30 working days.

Once the license is approved, the applicant has 1 year to start the activity. Throughout the entire process, and once the activity has begun, we provide continuous follow-up, including monitoring regulatory compliance, preparing annual reports, and tracking fee payments to ensure full compliance with applicable regulations.

AI presents significant challenges in terms of data protection, liability, and regulation. As a law firm, we advise our clients to ensure AI is used ethically, in compliance with current regulations, and with minimal legal risk.

The metaverse is a virtual environment where people can interact, work, shop, and socialise through avatars in real time. This digital space integrates technologies such as augmented reality (AR), virtual reality (VR), and blockchain, creating a parallel universe that extends digital life beyond social media, with applications in education, entertainment, and business.

We provide guidance on projects related to the metaverse, including the creation and commercialisation of digital assets within these virtual environments. We help you navigate regulatory challenges and structure metaverse projects securely and in compliance with current laws.