From the ancient Acropolis to the bustling streets of Athens, Greece is a country steeped in history and tradition. But it’s also a country that’s embracing the future, particularly in the realm of cryptocurrency in Greece. With growing adoption rates and proactive regulatory measures, Greece is quickly becoming a hotbed for crypto innovation. Whether you’re a seasoned crypto investor or just getting started, there’s plenty to explore in Greece’s crypto world.
Here, we take a look at the state of crypto in Greece, including regulations, adoption rates, legal issues, and economic impact.
Regulations in Greece
During the Greek debt crisis in 2015, many Greeks turned to online trading platforms to search for alternative financial solutions, including Bitcoin, as banks began to shut down and imposed capital controls. This trend may explain the recent surge in interest in cryptocurrency from Greek women, reported by Bitcoin.com in May 2021, showing a remarkable increase of 163.67 percent.
In reaction to the growing usage of virtual currencies in Greece, the Bank of Greece has adopted the European Banking Authority’s (EBA) warnings regarding the risks associated with cryptocurrencies.
Greece has also joined the European Blockchain Partnership (EBP), founded by 22 countries on April 10, 2018. The EBP aims to situate an EBSI, or European Blockchain Services Infrastructure, to help deliver cross-border digital public services while ensuring that security and privacy standards are followed. By joining the EBP, Greece has shown its commitment to adopting and promoting blockchain technology and providing safe and secure use of virtual currencies.
Adoption of Crypto in Greece
The adoption of cryptocurrency in Greece has been a bumpy ride, with the government taking a hands-off approach in terms of regulations. However, as of the beginning of 2021, digital wallet providers in Greece or from Greece to other countries must apply to the Hellenic Capital Markets Commission (HCMC) for registration to comply with Anti Money Laundering requirements. Additionally, custodianship of digital assets that qualify as financial instruments must be licensed following the Greek MiFID Law.
However, more must be done to offer the confidence services providers require and attract overseas investment.
Tax Regime
Greece has not established any specific legal provisions regarding the taxation of cryptocurrency income, whether from mining or transactions. However, the Independent Public Revenues Authority (IPRA) announced in its 2019 strategic plan that it intends to propose taxing income from cryptocurrency transactions as income from portfolio investments. Nevertheless, the IPRA has not further stated this issue in its 2020 and 2021 strategic plans.
There are two types of cryptocurrency income: income from mining and income from transactions. The taxation of mining income remains unclear, but most tax experts and accountants believe it would be taxed as business profit after deducting mining costs. On the other hand, revenue from cryptocurrency transactions would be taxed as capital gains tax, according to the IPRA’s declaration. Capital gains tax is figured based on the difference between the acquisition and sale prices, and any costs related to the purchase or sale of cryptocurrency would be included. Natural persons are taxed at a rate of 15%, while legal persons are taxed as business income at the applicable corporate income tax rate.
Moreover, the exchange of traditional currencies for units of cryptocurrency and vice versa, which is provided in exchange for a sum equal to the spread between the exchange rate and the price the operator paid to acquire the currency which it sells that currency to its clients, is exempt from VAT, according to the Skatteverket v David Hedqvist case.
The Greek Tax Authorities for crypto taxation Greece are expected to adhere to the Court’s ruling on VAT exemption in such transactions.
Insights on Cryptocurrency Legal Issues
Most countries still don’t know how the law treats cryptocurrency mining because they haven’t made any laws about cryptocurrencies yet. This lack of clear rules has made crypto miners all over the world confused and uncertain.
Under the FinCEN or Financial Crimes Enforcement Network, crypto miners are classified as money transmitters, which means they may be subject to the laws governing that activity. In Israel, for example, crypto mining is considered a business subject to corporate income tax. In India and other countries, regulatory uncertainty persists, with no clear laws or regulations regarding crypto mining.
Canada and the United States, on the other hand, are relatively friendly towards crypto mining. However, apart from countries that have specifically banned cryptocurrency-related activities, very few nations prohibit crypto mining.
In light of this regulatory uncertainty, many crypto miners have continued to operate under a cloud of ambiguity, with no clear understanding of how their activities will be regulated or taxed. This lack of clarity has called for greater regulatory oversight and transparency in the cryptocurrency industry to protect miners and ensure continued growth and innovation.
Impact on the Greek Economy
Greece has been in the news for a decade due to its weakened economy, rising debts, lower pensions, high unemployment, and political polarization. The COVID-19 pandemic has impacted tourism, a big way for the country to generate wealth.
- The need for an alternative currency
Greece needs another means of currency to sustain itself financially. The country announced in 2019 that it would require digital tax receipts to combat untraceable cash transactions. Many financial experts believe that higher tax rates will result in catastrophic cash flow issues for Greece’s middle class, who rely on cash.
- The Rise of Cryptocurrency in Greece
The Greek people began incorporating cryptocurrency into their lives in 2015 during the financial crisis when banks shut down. Many Greeks seek alternatives to the current financial system due to the high unemployment rate and the ongoing pandemic. The interest in cryptocurrency Greece has grown alongside; according to a study, Greek women’s interest in cryptocurrency has grown the most in all of Europe.
- The Potential of Cryptocurrency for Greece’s economic improvement
Countries like Venezuela and Zimbabwe have utilized cryptocurrency as a form of resistance to struggling economies. Incorporating cryptocurrency and EU bailouts could potentially see Greece improving financially over time.
Greece’s interest in cryptocurrency has grown since its financial crisis in 2015. With the ongoing pandemic and high unemployment rates, many Greeks seek alternatives to the current financial system. Cryptocurrency could potentially provide a solution to Greece’s economic struggles and lead to its improvement over time.
Cryptocurrency in Greece: Conclusion
In conclusion, Greece has faced numerous economic challenges, including rising debts, high unemployment, and a tourism industry heavily impacted by COVID-19. In response, the government implemented new banking rules to combat untraceable cash transactions, which has resulted in difficulties for the shrinking middle class relying on cash. This led to an increased interest in cryptocurrency as an alternative currency, particularly during the financial crisis in 2015 when the banks shut down.
While many Greeks are still unaware of cryptocurrency, interest has been growing, particularly among womens. Cryptocurrency in Greece can create just the opportunity the general populace requires for better economic conditions and financial freedom.
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FAQs
Is crypto in Greece legal?
Yes, cryptocurrency is legal in Greece. The Greek government does not currently regulate or prohibit the use of cryptocurrency, and it is treated as property for tax purposes. However, the Greek government has warned citizens about the risks of cryptocurrency investing and urged caution. While cryptocurrency in Greece is legal, it is still a relatively new and unregulated area, so investors should proceed cautiously and seek professional advice before investing.
Is crypto taxed in Greece?
There is no specific crypto taxation in Greece. Capital gains from cryptocurrency transactions are subject to a tax of 15%. However, any income from mining is not clearly defined and subject to varying interpretations, with prevailing views among tax experts and accountants suggesting that it may be taxed as business profit at the applicable income tax rate after deducting mining costs. Despite this, there is no official guidance on how mining income is to be taxed. Additionally, the supply of services involving the exchange of traditional currencies for crypto and vice versa is exempt from VAT in Greece.
How to buy Bitcoin in Greece?
There are several ways to get Bitcoin in Greece:
- Cryptocurrency exchanges: You can use a crypto exchange in Greece to buy Bitcoin. To add money to your account, you must sign up for an account, verify your identity, and link a payment method like a bank account or credit card. With established funds, you can buy Bitcoin and keep it in your digital wallet. Millionero can be of great help here!
- Bitcoin ATMs: Bitcoin ATMs are available in Greece, allowing you to purchase Bitcoin with cash in the country.
- Peer-to-peer exchanges: You can also buy Bitcoin from other individuals using a peer-to-peer exchange. These exchanges allow you to buy Bitcoin directly from other people, often using a payment method of your choice.
- Bitcoin mining: Another way to get Bitcoin is through mining. This requires specialized equipment and technical knowledge but can be profitable if done correctly.
How to buy crypto in Greece?
In Greece you can buy crypto through a variety of channels. One option is to use a cryptocurrency exchange platform like Millionero where various digital currencies can be bought, sold, and traded. Alternatively, you can use a peer-to-peer exchange to buy and sell bitcoins with others in your area. Bitcoin can also be purchased at some ATMs in Greece using cash.
Is Bitcoin available in Greece?
Yes, Bitcoin is available in Greece. Users can buy and sell Bitcoin through various cryptocurrency exchange platforms like Millionero, peer-to-peer exchanges, and Bitcoin ATMs in Greece.
What are some crypto-friendly banks in Greece?
Currently, there are no known crypto-friendly banks in Greece. However, some banks have been reported to be more open to cryptocurrency-related transactions than others, such as the National Bank of Greece and the Eurobank.