Greece Moves to Regulate Crypto Amid Surging Adoption

Greece Moves to Regulate Crypto Amid Surging Adoption

Authorities and investors in Greece are increasingly concerned about the lack of clear regulatory and tax frameworks for cryptocurrencies, as digital asset adoption reaches new heights in the country. This concern has been fueled by the rapid growth in cryptocurrency use, particularly among young adults around the age of 30, driven in part by the financial crisis that began in 2009.

According to Statista, cryptocurrency penetration in Greece is expected to reach 61% by the end of 2024, with the number of users projected to hit about 6 million by 2025. As more Greeks hold crypto, authorities are convening to establish regulations that will contain and benefit from the digital assets.

Greece has admitted it currently lacks an adequate legal framework to govern this burgeoning industry. Tax authorities are particularly worried about investors underreporting their profits or not reporting them at all. The Greek City Times reports that the country does not fully and officially recognize cryptocurrencies, creating a “legislative void” that some investors are exploiting.

To address these issues, Greece has set up a dedicated committee to finalize recommendations for the Ministry of National Economy and Finance by September. These recommendations are expected to clearly define cryptocurrency regulation, taxation, and monitoring.

Sources indicate that Greece is considering classifying crypto profits as “capital gains from securities sales,” which would be subject to a 15% tax rate. This proposed legislation aims to regulate the rapidly growing crypto sector and provide much-needed clarity for investors and tax authorities.

Currently, the country’s Income Tax Code does not mention a crypto tax system. However, guidelines from the Independent Authority for Public Revenue suggest that gains from Bitcoin transactions “may be liable to income tax.”

With a clear regulatory framework, Greece hopes to provide clarity to investors and effectively tax the sector, closing the “existing tax gap.”

Greece is not alone in working on a tax framework for its crypto sector. South Korea has also been developing a framework to tax crypto trading profits. Although initially set to take effect on January 1, 2025, the implementation of the crypto tax in South Korea has been proposed to be postponed by three years.

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