Crypto businesses brace for tighter rules as Greece mulls 24% tax on services

Financial authorities in Greece are imposing stricter rules on the country’s crypto sector to meet European standards and step up the game in curbing money laundering and tax ￰0￱ new regulations, which bring more checks and closer monitoring, come ahead of important decisions on taxation in Athens, expected to hit both crypto companies and their clients this ￰1￱ crypto platforms face rigorous licensing Greece has adopted a tougher licensing regime for digital asset exchanges and wallet providers that will make it much harder for such entities to obtain ￰2￱ updated framework, introduced by the Hellenic Capital Market Commission (HCMC), aligns national rules with the European Union’s Markets in Crypto Assets ( MiCA ) regulation, the local press ￰3￱ amendments, already published in the official Government Gazette, overhaul the way businesses can enter Greece’s crypto market, the To Vima weekly highlighted in an article on ￰4￱ the stricter rules, applicants are required to pass a rigorous licensing procedure, which starts with a preliminary meeting with ￰5￱ they must submit a company dossier, complete with a business plan, the newspaper unveiled, emphasizing: “Businesses are no longer able to simply open an office in Greece to operate.” Crypto platforms are also expected to share detailed information about their shareholders and managers, and explain the mechanisms they have adopted to ensure customer ￰6￱ full review of an application may take up to 40 working days and missing documents will result in its ￰7￱ who fail to secure a Greek license will be barred from offering services in the ￰8￱ will be able to assess available crypto services before committing any funds, To Vima noted while pointing out: “Even large international exchanges serving millions of users, such as Binance, will need to comply with the new framework to continue operating in Greece.” At the same time, successful applicants will be granted what officials described as a “European stamp of reliability” that should boost user ￰9￱ is serious about crypto oversight With the latest regulations, Greece also seeks to strengthen oversight of the industry, mainly in terms of preventing the legalization of illicit money and tax evasion.

Crypto-linked capital flows will be closely monitored by the Hellenic Anti-Money Laundering Authority ( HAMLA ) and the Independent Public Revenue Authority (IAPR). The two agencies will be able to conduct checks to establish the source of funds involved in crypto transactions and freeze digital assets in the case of suspicious ￰10￱ one such case earlier this year, Greek authorities blocked a wallet on a local exchange holding coins allegedly stolen in the $1.5 billion Bybit heist , as reported by ￰11￱ intend to employ advanced tools to trace flagged cryptocurrency transfers and identify potential money laundering ￰12￱ meetings between the HCMC and the HAMLA indicated the Greek government is serious about supervision in the crypto ￰13￱ meetings held in January after Prime Minister Kyriakos Mitsotakis vowed to regulate the “dubious” crypto market, stating in front of his cabinet members: “We aim to bring order to a largely ambiguous and unregulated domain.” Greece to slap crypto services with 24% VAT The regulatory push comes as Greece prepares to shape its tax policy regarding crypto operations as ￰14￱ decisions will be made this fall.

A special task force has already prepared its recommendations – tax on capital gains starts at 15% for private investors and will likely be higher for legal ￰15￱ may be obliged to report digital asset holdings on their annual income tax ￰16￱ authorities are also considering slapping 24% VAT (value-added tax) on some crypto-related services, To Vima ￰17￱ is expected to announce the final tax rates during the Thessaloniki International Fair next month. Don’t just read crypto ￰18￱ ￰19￱ to our newsletter. It's free .