The development of an effective and fair institutional framework for the taxation of cryptocurrencies, along with the incorporation of international legislation for consumer protection, was announced by the Minister of National Economy and Finance, Kostis Hatzidakis, speaking tonight at an event organized by the Numismatic Museum.
“Cryptocurrencies are a new reality, we cannot treat it with ostrichism. However, there is no control to the extent that there should be at the national and international level,” he said. The institutional framework that is currently being developed, in addition to the initiatives of the EU and the OECD, will be shaped, the minister said, 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.
– Developing the framework for the tax treatment of cryptocurrencies, which are a form of investment, taking into account best international practices.
– Developing the framework for controlling cryptocurrencies, and combating their use for illegal activities.
At the same time, the EU and OECD framework on cryptocurrencies is being incorporated into national legislation.
In particular:
– At the European level in May 2023, the MiCA Regulation on Cryptocurrency Markets was adopted in May 2023, the first EU regulatory framework for cryptocurrencies that puts rules on market participants and protects consumers. Member states have until 30 December 2024 to incorporate the key provisions of the regulation into national legislation.
– Greece is one of 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, which is already done for bank deposits, to the area of crypto assets. Most of the provisions of this new framework have already been incorporated into the EU rules on administrative cooperation between Member States in the field of taxation and will be implemented in 2027.
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, noting for example that in Sweden cash has been reduced to 5-10% of transactions, but in Germany it remains at 60% and in Austria there is a pro-cash movement. In Greece, according to a recent survey by IOBE, the value of card payments exceeded, even marginally, for the first time in 2022, the corresponding total of cash withdrawals (50.5% vs. 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 too hesitant, Euroscepticism and Euro-scepticism prevail. But at the same time, Brazil, Russia, China are moving forward. What are we going to do? Are we going to be with the cash movement? We cannot stop the earth to descend, nor can we escape from reality.” “Digital currencies are being adopted for convenience, but also because alternative means of payment today are not in Europe’s control. Europe is less active and more reactive. So maybe the heretical view will prevail in relation to the election of Mr. Trump and Europe will be forced to finally do something,” the minister concluded.
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