The Rapid Evolution of Crypto Assets
In the ever-evolving landscape of finance, crypto assets stand out as a digital innovation that excites an ever growing number of investors, as reflected by the growing market cap of crypto assets. Cryptocurrencies, led by Bitcoin and a myriad of altcoins, have emerged as the fastest developing area in finance, capturing the imagination of investors worldwide. As digital currencies continue to gain momentum, they represent not just an alternative investment avenue but a revolutionary shift in the way we perceive and engage with financial assets. The decentralized and borderless nature of crypto assets brings forth unparalleled opportunities and challenges, making it a dynamic frontier where innovation and adaptability are paramount.
Is the Provision of Crypto-related Services Regulated in Greece?
The provision of services related to crypto assets is captured by the Greek Anti-Money Laundering Law No. 4557/2018. As a result, entities engaging in the provision of such services, either via a local establishment (i.e., locally established corporate entity) or in a cross-border fashion, are regarded as “obliged entities”. Consequently, it is required that such entities register with the Hellenic Capital Market Commission (HCMC) prior to providing crypto-related services to Greek-residing individuals, as per the HCMC Decision No. 5/898/3.12.2020.
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The registration application is filed before the competent department of the HCMC and is subject to filing (EUR 1,500, plust stamp duties, one-off) and maintenance fees (EUR 1,000, plus stamp duties, anually). Legal fees will greatly depend on the extent of the documents to be reviewed prior to submitting the application to the HCMC (e.g., the AML/CFT policy, the unusual activity & escalation policy etc.).
What Administrative Fines Can be Imposed?
If an entity engages in the provision of crypto-related services without first registering with the HCMC, the fines of Article 46 Law No. 4557/2018 may be imposed by the competent regulator. Among others, a fine of up to EUR 5M can be imposed to the entity being in breach of the relevant obligation.
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