Regulation
Greek Government Prepares to Regulate and Tax Cryptocurrencies: What You Need to Know
Summary
- Greece plans to introduce tax framework for cryptocurrencies and digital assets by January 2025
- By September 2024, a special committee will submit the results of cryptocurrency research to the Ministry of National Economy and Finance
- Profits from trading cryptocurrencies and digital assets are expected to be taxed as capital gains at a rate of 15%.
- Currently, earnings from cryptocurrencies are not taxed and are not recognized by the Greek government.
- The new framework aims to define cryptocurrencies, establish taxation methods and create monitoring processes
The Greek government is taking steps to regulate and tax cryptocurrencies and digital assets, which are currently not recognized or taxed in the country.
According to recent reports, A new fiscal framework is expected to come into force by January 2025, marking a significant shift in Greece’s approach to the burgeoning cryptocurrency market.
A special committee has been tasked with studying cryptocurrencies and digital assets and is expected to submit its findings to the Ministry of National Economy and Finance by September 2024.
The work of this committee will be crucial to defining future regulations, focusing on three key areas: defining and registering all cryptocurrencies, defining the method of taxation, and creating a monitoring process.
Under the proposed framework, profits from trading in cryptocurrencies and digital assets would be taxed as capital gains from the sale of securities at a rate of 15%.
The move aims to align cryptocurrency earnings with other forms of investment income and fill a gap that has allowed some investors to avoid reporting their cryptocurrency profits.
The current lack of legislation has led to what the Greek government sees as exploitation of the system. According to local reports, very few investors report profits from cryptocurrency transactions. Those who do are often described as:
“mainly unemployed individuals or taxpayers with no income but with significant real estate assets.”
This situation has attracted the attention of accountants and tax experts in Greece, who have observed an increase in cryptocurrency-related activity, particularly among individuals in their 30s.
The push for regulation comes as Greece prepares for the full implementation of the Crypto Markets Regulation (MiCA) worldwide. the European Union.
Until December 30, 2024, most cryptocurrency-related services in Greece will operate largely unregulated, with some exceptions. Businesses that exchange cryptocurrencies for fiat money or offer custody services must register with the Hellenic Capital Market Commission (HCMC).
A transition period from December 30, 2024 to July 1, 2026 will allow companies already registered with HCMC to continue providing services without full MiCA authorization. After July 1, 2026, all crypto service providers will need to be fully authorized in Greece or another EU member state, which will lead to stricter supervision and compliance requirements.
Greece has already implemented some anti-money laundering (AML) measures for crypto service providers. These include customer due diligence requirements, maintaining a centralized register of ultimate beneficial owners, and appointing an AML Compliance Officer.
The move to regulate and tax cryptocurrencies comes as the cryptocurrency scene in Greece is gaining momentum. Athens, the capital, has seen a rise in cryptocurrency-related events and meetups.
In December 2023, the ATHDAOx event attracted four times more attendees than its inaugural year, demonstrating the growing interest in decentralized finance and crypto initiatives.
The Greek Stock Exchange has shown interest in blockchain technology, partnering with Sui Blockchain to implement a new fundraising mechanism. This partnership puts the Greek Stock Exchange “at the forefront of innovation […] compared to trade around the world,” according to a Sui representative.