The development of an effective and fair institutional framework for taxation of cryptocurrenciesalongside the integration of international consumer protection legislation, announced the Minister of National Economy and Finance Kostis Hatzidakis speaking tonight at an event organized by the Numismatic Museum.

“Cryptocurrencies are a new reality, it cannot be ostriched. But there is no control to the extent that it should at the national and international level”, he stressed. The institutional framework that is being processed, in addition to the initiatives of the EU and the OECD, as the minister mentioned, will be formed in cooperation with the Bank of Greece and will move along three axes:

  • Development of the regulatory framework for the operation and monitoring of cryptocurrencies and other digital assets.
  • Development of the framework for the tax treatment of cryptocurrencies, which are a form of investment, taking into account international best practices.
  • Developing the control framework of cryptocurrencies, and combating their use for illegal activities.

At the same time, the EU and OECD framework for cryptocurrencies is integrated into national legislation. In particular:

  • At the European level, in May 2023 the MiCA Regulation on Cryptocurrency Markets was approved, the first EU regulatory framework for cryptocurrencies that sets rules for market participants and protects consumers. Member States have until 30 December 2024 to incorporate the main provisions of the regulation into national legislation.
  • Greece is one of the 59 countries that have announced their intention to join the OECD’s Crypto-Asset Reporting Framework (CARF). This framework extends the Automatic Exchange of Information for tax purposes that is already done for bank deposits, and in the field of crypto assets. Most of the provisions of this new framework have already been incorporated into the EU rules on the administrative cooperation of the Member States in the field of taxation and will be implemented in 2027.

Mr. Hatzidakis estimated that the most likely scenario for the future will be the coexistence of different means of payment (cards, cash and digital currencies), with an upward trend of digital means of payment. He noted that the picture is not the same in all EU countries, stating for example that in Sweden cash has been limited to 5-10% of transactions but in Germany it remains at 60% and in Austria there is a movement in favor of cash. In Greece, according to a recent IOBE survey, the value of card payments exceeded, even marginally, for the first time in 2022 the corresponding total of cash withdrawals (50.5% versus 49.5%).

The minister also criticized the European Union for delaying the adoption of the digital euro. “The issue is being discussed, but there is no progress. Most governments are very hesitant, Euroscepticism and Euroscepticism prevail. At the same time, however, Brazil, Russia, and China are advancing. What will we do? Will we be with the cash movement? We cannot stop the earth to descend, nor can we escape from reality.” emphasized Mr. Hatzidakis. “Digital currencies, he concluded, are being adopted for reasons of convenience but also because alternative means of payment today are not in Europe’s control. Europe acts less and reacts more. Perhaps, therefore, the heretical opinion prevails in relation to the election of Mr. Trump and Europe is finally forced to do something».