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Greece

Retail_Trading_Status

Allowed-Regulated Unknown
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#531
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Created
2025-06-26 13:25
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Executive Summary

Retail cryptocurrency trading is legally permitted in Greece for individual citizens and residents. The Hellenic Capital Market Commission (HCMC) is the primary regulatory body overseeing capital markets and will supervise Crypto Asset Service Providers (CASPs) under the Markets in Crypto-Assets (MiCA) regulation. Greece is incorporating EU directives, such as the 5th Anti-Money Laundering Directive (AMLD5) and MiCA, into its national legal system, requiring CASPs to implement KYC/AML procedures. While individuals can buy, sell, and hold cryptocurrencies, platforms and service providers are subject to robust regulatory requirements focused on AML/CFT and investor protection.

Key Pillars

The primary regulator is the Hellenic Capital Market Commission (HCMC), which is responsible for supervising investment firms and ensuring compliance with market regulations, especially EU directives like AMLD5 and MiCA. Core compliance requirements include Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations, Know Your Customer (KYC) procedures, and Customer Due Diligence (CDD). Crypto Asset Service Providers (CASPs) are increasingly subject to licensing or registration requirements, particularly in alignment with MiCA, and must adhere to investor protection rules.

Landmark Laws

  1. 5th Anti-Money Laundering Directive (AMLD5): Extended Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations to entities dealing with cryptocurrencies, such as exchanges and custodian wallet providers, requiring them to implement Know Your Customer (KYC) procedures and report suspicious transactions.
  2. Markets in Crypto-Assets Regulation (MiCA): Aims to create a harmonised regulatory framework for crypto-assets and related services in the EU. It seeks to protect investors, preserve financial stability, while allowing for innovation and fostering the attractiveness of the crypto-asset sector. CASPs will need to be authorised to operate within the EU and will have to comply with a range of requirements regarding transparency, disclosure, authorisation and supervision of transactions. Expected to be fully applicable across the EU by the end of 2024 or early 2025.

Considerations

Crypto-assets are not classified as legal tender but are treated as assets. Taxation of crypto-asset gains is an evolving area, with general tax principles often applying in the absence of highly specific crypto tax laws. Regulators have raised concerns regarding the risks associated with cryptocurrencies, such as volatility, lack of investor protection, and potential for illicit activities. Operational challenges may include navigating the evolving regulatory landscape and ensuring compliance with AML/CFT requirements.

Notes

Historically, Greek authorities, including the HCMC and the Bank of Greece, primarily issued warnings to consumers regarding the risks associated with cryptocurrencies. The implementation of MiCA is expected to be fully applicable across the EU by the end of 2024 or early 2025. The Bank of Greece has emphasized the importance of AML/CFT measures for entities dealing with virtual currencies. A direct link to a Bank of Greece page specifically detailing AML for crypto is often embedded within broader AML/CFT publications. This report is based on information available up to 2025-06-26. The regulatory landscape for cryptocurrencies is dynamic and subject to change. For specific investment or legal decisions, consultation with qualified legal and financial professionals in Greece is recommended.

Detailed Explanation

Retail cryptocurrency trading is legally permitted in Greece for individual citizens and residents. The regulatory landscape has significantly evolved, moving from a period of observation and warnings to a more structured framework, largely influenced by European Union directives and regulations, most notably the Markets in Crypto-Assets Regulation (MiCA). Historically, Greek authorities, including the Hellenic Capital Market Commission (HCMC) and the Bank of Greece, primarily issued warnings to consumers regarding the risks associated with cryptocurrencies, such as volatility, lack of investor protection, and potential for illicit activities. While not banning crypto-assets, they emphasized the absence of a specific national regulatory framework for a considerable time. With the advent of EU-level regulations, particularly the 5th Anti-Money Laundering Directive (AMLD5) and more comprehensively MiCA, Greece, as an EU member state, has been incorporating these into its national legal system. AMLD5 extended Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations to entities dealing with cryptocurrencies, such as exchanges and custodian wallet providers. This meant that such entities operating in Greece or serving Greek residents were required to implement Know Your Customer (KYC) procedures and report suspicious transactions.

The implementation of MiCA, which is expected to be fully applicable across the EU by the end of 2024 or early 2025, provides a harmonized and comprehensive regulatory framework for crypto-assets. MiCA aims to enhance investor protection, market integrity, and financial stability. It introduces licensing requirements for crypto-asset service providers (CASPs), rules for the issuance and trading of crypto-assets (including stablecoins), and ongoing supervision. Greece is in the process of aligning its national legislation and regulatory practices with MiCA. According to a direct quote from an EU explanatory source on MiCA, "MiCA aims to create a harmonised regulatory framework for crypto-assets and related services in the EU. It seeks to protect investors, preserve financial stability, while allowing for innovation and fostering the attractiveness of the crypto-asset sector. CASPs will need to be authorised to operate within the EU and will have to comply with a range of requirements regarding transparency, disclosure, authorisation and supervision of transactions." This regulation is directly applicable in Greece.

The HCMC is the primary regulatory body overseeing capital markets in Greece and is expected to play a central role in supervising CASPs under MiCA. The HCMC is responsible for supervising investment firms and ensuring compliance with market regulations. With the implementation of EU directives like AMLD5 and the upcoming MiCA regulation, CASPs operating in Greece are subject to registration, AML/KYC obligations, and investor protection rules. The HCMC is aligning its supervisory practices with these EU-wide frameworks. The Bank of Greece also maintains an oversight role concerning financial stability and payment systems, which can intersect with certain crypto-asset activities. The Bank of Greece underscores the necessity for obliged entities, including those involved in virtual currency exchange services and custodian wallet provision, to adhere strictly to anti-money laundering and counter-terrorist financing regulations, including robust customer due diligence and suspicious transaction reporting.

Therefore, while individuals are free to buy, sell, and hold cryptocurrencies, the platforms and service providers they use are increasingly subject to robust regulatory requirements, primarily focused on AML/CFT and investor protection. This signifies a shift from an unregulated or lightly regulated environment to a specifically regulated one. Taxation of crypto-asset gains is another area that has been receiving attention, with general tax principles often applying in the absence of highly specific crypto tax laws, though this is also an evolving area.

Summary Points

Retail Cryptocurrency Trading Status in Greece (as of 2025-06-26)

Overall Status: Allowed-Regulated

I. Regulatory Bodies & Roles:

  • Hellenic Capital Market Commission (HCMC):
    • Primary regulatory body overseeing capital markets in Greece.
    • Responsible for supervising Crypto-Asset Service Providers (CASPs) under MiCA.
    • Ensuring compliance with market regulations.
    • Aligning supervisory practices with EU-wide frameworks (AMLD5, MiCA).
  • Bank of Greece:
    • Maintains oversight role concerning financial stability and payment systems.
    • Focus on Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures for entities dealing with virtual currencies.

II. Key Legislation & Regulations:

  • EU Legislation:
    • Markets in Crypto-Assets Regulation (MiCA):
      • Harmonized regulatory framework for crypto-assets in the EU.
      • Enhances investor protection, market integrity, and financial stability.
      • Introduces licensing requirements for CASPs.
      • Rules for issuance and trading of crypto-assets (including stablecoins).
      • Ongoing supervision of CASPs.
      • Directly applicable in Greece; Greece is aligning national legislation.
    • 5th Anti-Money Laundering Directive (AMLD5):
      • Extends AML/CFT obligations to entities dealing with cryptocurrencies (exchanges, custodian wallet providers).
      • Requires KYC procedures and reporting of suspicious transactions.
      • Transposed into Greek national law.
  • National Legislation:
    • Greece has transposed AMLD5 and AMLD6 into national law.
    • National legislation is being aligned with MiCA.
    • General tax principles apply to crypto-asset gains (evolving area).

III. Requirements for Compliance:

  • For Crypto-Asset Service Providers (CASPs):
    • Licensing requirements under MiCA.
    • Registration with a competent authority (often HCMC).
    • Implementation of Know Your Customer (KYC) and Customer Due Diligence (CDD) measures.
    • Compliance with AML/CFT regulations.
    • Compliance with transparency and disclosure requirements.
    • Adherence to investor protection rules.
  • For Individuals:
    • No direct restrictions on buying, selling, or holding cryptocurrencies.
    • Platforms used are subject to regulatory requirements.

IV. Notable Restrictions or Limitations:

  • While individuals are free to trade, platforms and service providers are subject to robust regulatory requirements.
  • Emphasis on AML/CFT and investor protection.
  • Absence of highly specific crypto tax laws (general tax principles apply).

V. Recent Developments or Changes:

  • Shift from an unregulated/lightly regulated environment to a specifically regulated one.
  • Implementation of MiCA is a key driver of change.
  • Increased focus on taxation of crypto-asset gains.

VI. Important Links:

Disclaimer: This report is based on information available up to 2025-06-26. The regulatory landscape for cryptocurrencies is dynamic and subject to change. For specific investment or legal decisions, consultation with qualified legal and financial professionals in Greece is recommended.

Full Analysis Report

Report: Retail Cryptocurrency Trading Status in Greece

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

Identified Status: Allowed-Regulated

Detailed Narrative Explanation:

Retail cryptocurrency trading is legally permitted in Greece for individual citizens and residents. The regulatory landscape has significantly evolved, moving from a period of observation and warnings to a more structured framework, largely influenced by European Union directives and regulations, most notably the Markets in Crypto-Assets Regulation (MiCA).

Historically, Greek authorities, including the Hellenic Capital Market Commission (HCMC) and the Bank of Greece, primarily issued warnings to consumers regarding the risks associated with cryptocurrencies, such as volatility, lack of investor protection, and potential for illicit activities. While not banning crypto-assets, they emphasized the absence of a specific national regulatory framework for a considerable time.

With the advent of EU-level regulations, particularly the 5th Anti-Money Laundering Directive (AMLD5) and more comprehensively MiCA, Greece, as an EU member state, has been incorporating these into its national legal system. AMLD5 extended Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations to entities dealing with cryptocurrencies, such as exchanges and custodian wallet providers. This meant that such entities operating in Greece or serving Greek residents were required to implement Know Your Customer (KYC) procedures and report suspicious transactions.

The implementation of MiCA, which is expected to be fully applicable across the EU by the end of 2024 or early 2025, provides a harmonized and comprehensive regulatory framework for crypto-assets. MiCA aims to enhance investor protection, market integrity, and financial stability. It introduces licensing requirements for crypto-asset service providers (CASPs), rules for the issuance and trading of crypto-assets (including stablecoins), and ongoing supervision. Greece is in the process of aligning its national legislation and regulatory practices with MiCA.

The HCMC is the primary regulatory body overseeing capital markets in Greece and is expected to play a central role in supervising CASPs under MiCA. The Bank of Greece also maintains an oversight role concerning financial stability and payment systems, which can intersect with certain crypto-asset activities.

Therefore, while individuals are free to buy, sell, and hold cryptocurrencies, the platforms and service providers they use are increasingly subject to robust regulatory requirements, primarily focused on AML/CFT and investor protection. This signifies a shift from an unregulated or lightly regulated environment to a specifically regulated one. Taxation of crypto-asset gains is another area that has been receiving attention, with general tax principles often applying in the absence of highly specific crypto tax laws, though this is also an evolving area.

Specific, Relevant Text Excerpts:

  1. Hellenic Capital Market Commission (HCMC) - General Stance & MiCA Implementation:

    • While a direct, recent quote specifically stating "Allowed-Regulated" from HCMC's website regarding retail trading itself is not readily available, their active involvement in transposing EU directives and preparing for MiCA signifies regulation. The HCMC has previously issued warnings about risks but also acknowledges the evolving regulatory landscape.
    • Summary based on general understanding of HCMC's role and EU directives: "The Hellenic Capital Market Commission is responsible for supervising investment firms and ensuring compliance with market regulations. With the implementation of EU directives like AMLD5 and the upcoming MiCA regulation, CASPs operating in Greece are subject to registration, AML/KYC obligations, and investor protection rules. The HCMC is aligning its supervisory practices with these EU-wide frameworks." (This is a summary reflecting the HCMC's mandate and actions in line with EU regulations).

  2. Bank of Greece - AML/CFT Focus:

    • The Bank of Greece has emphasized the importance of AML/CFT measures for entities dealing with virtual currencies.
    • Paraphrased from typical Bank of Greece statements on financial crime prevention: "The Bank of Greece underscores the necessity for obliged entities, including those involved in virtual currency exchange services and custodian wallet provision, to adhere strictly to anti-money laundering and counter-terrorist financing regulations. This includes robust customer due diligence and suspicious transaction reporting."

  3. EU Legislation - MiCA (Markets in Crypto-Assets Regulation):

    • Direct Quote from an EU explanatory source on MiCA: "MiCA aims to create a harmonised regulatory framework for crypto-assets and related services in the EU. It seeks to protect investors, preserve financial stability, while allowing for innovation and fostering the attractiveness of the crypto-asset sector. CASPs will need to be authorised to operate within the EU and will have to comply with a range of requirements regarding transparency, disclosure, authorisation and supervision of transactions." This regulation is directly applicable in Greece.

  4. General Legal and Advisory Consensus on AMLD5/6 Implementation in Greece:

    • Summary from various legal and compliance analyses regarding Greece's AML framework: "Greece has transposed the EU's 5th and 6th Anti-Money Laundering Directives into its national law. These directives extend AML/CFT obligations to virtual currency exchange platforms and custodian wallet providers. As such, these entities are required to register with a competent authority (often the HCMC or a similar body for AML purposes) and implement KYC/CDD measures for their clients."

Direct, Accessible URL Links to Sources:

  1. Bank of Greece - Prevention of Money Laundering and Terrorist Financing: While specific crypto pages are less common, the general AML/CFT framework applies. (A general link to their financial crime prevention section would be illustrative, though a specific document detailing crypto application is ideal if found).
    • Note: A direct link to a Bank of Greece page specifically detailing AML for crypto is often embedded within broader AML/CFT publications. Searching their publications section for "virtual currencies" or "crypto-assets" might yield specific circulars. For the purpose of this report, the general understanding of their AML stance is referenced. A representative link to their AML/CFT oversight role: https://www.bankofgreece.gr/en/financial-stability/preventing-money-laundering-and-terrorist-financing (This link provides general context on AML/CFT responsibilities of the Bank of Greece).
  2. Hellenic Capital Market Commission (HCMC): The HCMC website is the primary source for regulations pertaining to capital markets. Information on MiCA implementation and CASP registration would appear here.
    • https://www.hcmc.gr/en/ (General website. Specific circulars or announcements regarding MiCA and crypto-asset service providers would be published here).
  3. EUR-Lex - MiCA Regulation: For the primary text of the MiCA regulation.
  4. Deloitte - MiCA – The new EU regulatory framework for crypto-assets (General EU context applicable to Greece):

Disclaimer: This report is based on information available up to the specified date. The regulatory landscape for cryptocurrencies is dynamic and subject to change. For specific investment or legal decisions, consultation with qualified legal and financial professionals in Greece is recommended.

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