How to crypto 101: Greece

In Greece, the conversation around digital assets isn’t just picking up - it’s becoming part of the financial mainstream. Crypto payments in Greece are slowly becoming part of everyday life. Shops, freelancers, and online stores are showing more interest. At the same time, the government is working on rules. These rules should help people use crypto in a safe way. Greece crypto regulation is changing fast. It follows rules made by the European Union. If you want to use crypto in Greece, it’s good to know these laws.

How Greece defines and approaches blockchain and crypto

Greece has taken a steady but clear path when it comes to blockchain. The government supports digital innovation but wants it to grow under clear legal rules. Crypto payments in Greece are not forbidden, but they are approached with caution. The authorities are trying to strike a balance. They aim to support new tools like digital assets while keeping financial systems secure.

Greece crypto regulation begins with how the country defines blockchain. Law 4961/2022 was the first step. It gave legal definitions for blockchain, Distributed Ledger Technologies (DLT), and their uses. Blockchain is described as a series of linked blocks of data. It is decentralized, verified by math, and uses cryptography. DLT, in general, is a shared system that stores and verifies transactions. These definitions form the base of Greece crypto regulation and allow legal use of blockchain in various sectors.

The country follows the EU’s broader direction. Greece is part of the European Blockchain Partnership and the EU Blockchain Services Infrastructure. These projects support cross-border use of blockchain in public and private services. Greece’s national plan, called the Digital Transformation Bible 2020-2025, lists blockchain as a key technology. It highlights its value for public contracts, identity verification, supply chains, and other government services. These efforts reflect a positive national view of blockchain and support for future crypto payments in Greece.

In 2024, Law 5113/2024, also known as the DLT Law, expanded the legal use of blockchain. It helps Greece apply the EU’s DLT Pilot Regime. This regime lets financial firms test blockchain-based trading and settlement tools in a safe, controlled setting. Under this model, regulators watch and learn while companies experiment. This law is a major part of Greece crypto regulation and shows the country’s interest in using blockchain in capital markets.

The DLT Law also goes beyond the EU’s limits. It allows more financial products to be issued and traded using blockchain. It amends existing laws so that digital shares and securities are fully recognized. This helps firms issue bonds, run investment funds, and transfer shares using blockchain. For companies and investors, this makes crypto payments in Greece more practical, especially in the fintech sector.

The Hellenic Capital Market Commission (HCMC) oversees these changes. It works with EU institutions to enforce the rules. As Greece blockchain regulation evolves, the HCMC will remain the main body ensuring that platforms meet legal and technical standards. This strengthens trust in the country’s blockchain market.

Although cryptocurrencies are not legal tender in Greece, their use is not banned. The euro remains the official currency. But private parties can agree to use crypto in transactions. This gives some space for crypto payments in Greece, even without full legal status. As Greece crypto regulation becomes more complete, that space may grow.

The evolving legal status of cryptocurrencies in Greece

Greece does not have a detailed national law focused solely on cryptocurrencies. Instead, crypto activity is shaped by existing legal tools. Some parts of criminal law, civil law, and consumer protection already touch on how cryptocurrencies work in practice. Still, many questions about crypto use remain. Greece crypto regulation is mostly based on broader European rules, though this is starting to change.

Right now, the most important legal update comes from the European Union. The Markets in Crypto Assets Regulation (MiCAR) will apply in Greece starting 30 December 2024. This is a major step for crypto across Europe. It gives one clear set of rules for all member states. MiCAR introduces a full framework for digital assets. It explains how crypto projects should work, how firms should get permission to offer services, and how customers are protected. This is an important shift in Greece crypto regulation, especially for businesses planning to grow in the market.

MiCAR divides crypto assets into different groups. These include utility tokens, asset-referenced tokens, and e-money tokens. Each type follows different rules, depending on the risks involved. MiCAR also sets conditions for crypto service providers.

Companies offering crypto trading, custody, or exchange must apply for licenses. They also need to meet clear standards for operations, security, and governance. These standards will raise trust across the industry.

MiCAR does not apply to NFTs or central bank digital currencies. It also does not cover crypto assets that count as financial instruments. But it is still a big moment for Greece. Crypto payments in Greece will benefit from stronger protections. At the same time, firms must follow clearer rules. This helps build a safer space for growth. As MiCAR takes full effect, Greece crypto regulation will enter a new phase - more structured, more transparent, and better aligned with the needs of the market.

Where Greece stands on crypto taxation

Right now, Greece does not have a clear tax law for cryptocurrencies. There are no specific rules that say exactly how to tax crypto income. This gap leaves many users and businesses unsure about what to do. As a result, Greece crypto regulation still feels incomplete when it comes to taxes. Some people report their crypto earnings to stay safe, but there is no single rule that tells everyone to do so.

Financial advisors in Greece often suggest declaring all crypto earnings, just in case. Income from mining is usually seen as business income. Income from trading cryptocurrencies is treated like capital gains. But even this is not certain. In two recent cases, the tax office in Greece said that profits from selling cryptocurrencies were not taxable. The reason was that Greek tax law lists only a few income types that must be taxed. And crypto profits are not on that list.

This creates problems for asset declarations. Profits from crypto trading are not always accepted as valid sources of wealth. That makes it harder for individuals to explain their income. The lack of rules also affects companies offering crypto payments in Greece. They do not know which earnings might be taxed and how.

As for VAT, things are also unclear. The EU Court of Justice ruled that swapping crypto and regular money should not be taxed. But in Greece, one tax ruling said the opposite. It claimed that crypto is not legal currency, so selling it could involve VAT. Without a court ruling or official guide, people are left to guess.

Crypto payments in Greece need a stronger tax framework. As MiCAR comes into effect, it may push lawmakers to act. Clear tax rules would help both users and the government. That’s a missing part of Greece crypto regulation today.

AML rules and user verification in Greece

Crypto firms operating in Greece must follow strict rules to prevent illegal activity. These rules are part of the country’s anti-money laundering system. They also help build trust in the market. Greece crypto regulation is not just about markets and trading - it also focuses on identity checks and user safety. One key part of this is knowing who is behind each transaction.

All companies that deal with digital assets, such as exchanges or wallet providers, are called VASPs. Before they can begin working in Greece, these companies must register with the Hellenic Capital Market Commission (HCMC).

This step is not a full license, but it proves that they meet the country’s anti-money laundering rules. They must provide detailed information about their owners, business plans, internal systems, and their methods for checking users.

These checks are part of a wider system called Know Your Customer (KYC). This process is essential for building trust and ensuring that сrypto payments in Greece meet both local and EU-level security expectations.

KYC rules require VASPs to collect and confirm key details about their users. This includes personal identity data, risk assessments, and more. These rules help spot fraud and prevent illegal transfers. Once a firm is registered, it must continue to follow the law or face penalties. The goal is to make sure crypto payments in Greece are secure and traceable.

By the end of 2024, new EU rules will take effect. These rules will apply directly in Greece. They will make sure that both the sender and receiver of crypto transfers are clearly identified. This will strengthen Greece crypto regulation and support safer growth in the industry.