Will Cryptocurrencies Preserve Their Popularity in Greece? Expert Take

Expert Takes cover everything from Blockchain technology and ICO funding to taxation, regulation and cryptocurrency adoption by different sectors of the economy.

The European Union and member state countries are putting technological innovation - including cryptocurrencies and its underlying blockchain technology - into a strategic tool for income growth, national competitiveness and economic well-being.

The good news is that, the EEC is as committed to blockchain technology and cryptocurrencies as the EU and Greece is.

To determine whether or not cryptocurrencies are here to stay, an international research team comprised of Theodore Panagiotidis at the University of Macedonia in Greece and Orestis Vravosinos at the Barcelona Graduate School of Economics in Spain analyzed a broad spectrum of data representing several years in the life of Bitcoin, to reach a deeper understanding of cryptocurrency's value.

If cryptocurrencies continue to grow and position themselves as systems that are beyond the influence of banks and the reach of government regulation, we can be sure that governments will enact national laws and take their share of the proceeds.

"Many people believe that Bitcoin is going to replace the money we currently use, but we doubt it. That's because the government will never allow it. Governments want the tax revenues, and they want control. Bitcoin's fate is therefore highly unpredictable and dependent on what governments will do in the future."

What Greek tax professionals say about Greek cryptocurrency tax policy and laws"Currently there is no regulatory framework and relevant procedure to tax income derived from crypto/ICO transactions or mining activity within the Greek tax legislation. However, this does not mean that such income cannot be taxed by the Greek Tax Authority" said Spyros Dimitriou, Lawyer / Senior Manager, Tax, KPMG in Greece.

"If cryptocurrency/ICO transactions or mining activity is characterized as business activity or capital gains then such business income would be taxed at 29% in case of companies. In case of individuals' capital gains would be taxed at 15% and business activity including cryptocurrency/ICO transactions or mining activity would be taxed according to a graduated tax scale provided by the law he added."

Currently, Cyprus does not tax cryptocurrencies either.

Selva Ozelli, Esq., CPA is an international tax attorney and CPA who frequently writes about tax, legal and accounting issues for Tax Notes, Bloomberg BNA, other publications and the OECD..