Is Crypto Legal in Greece?

Law 4557/2018 (as amended), which transposed the EU's 5th Anti-Money Laundering Directive (AMLD5) and 6th Anti-Money Laundering Directive (AMLD6) into national law. This law defines "providers of services of virtual assets" and mandates their registration.

HCMC Decision No. 2/902/10.03.2021 (and subsequent amendments), which provides further details on the registration process and ongoing obligations.

Exchanges: Providers engaged in the exchange between virtual assets and fiat currencies, or between one or more virtual assets.

Custody Providers: Providers that offer custodian wallet services, holding, storing, and transferring virtual assets or private cryptographic keys on behalf of customers.

Other VASP Activities: Participation in and provision of financial services related to an issuer’s offer and/or sale of virtual assets, and providing virtual asset safekeeping and administration services.

Monitor transactions for suspicious activities and report them to the Hellenic Financial Intelligence Unit (FIU).

While not explicitly always requiring a physical office, the VASP must be incorporated in Greece and have its management and operational base within the country to effectively comply with Greek AML/CFT laws and HCMC supervision.

The national AML regime does not impose specific initial capital requirements as stringent as a licensing regime. However, VASPs are expected to have adequate financial resources to operate responsibly and comply with their obligations. The HCMC will assess the financial soundness as part of the registration.

Review: The HCMC reviews the application for compliance with Law 4557/2018 and related decisions. They may request additional information or clarifications.

Decision: If approved, the VASP is entered into the HCMC's "Register of Providers of Services of Virtual Assets."

Review & Assessment: The HCMC undertakes a thorough review, potentially consulting with other EU authorities. They have a defined timeframe for decision-making (typically 90 working days from the submission of a complete application).

Current: Require registration as a VASP with the HCMC under Law 4557/2018.

Future (from Dec 2024): Require a MiCA license as a Crypto-Asset Service Provider (CASP) from the HCMC.

Registration Regime (Current): Primarily focused on AML/CFT compliance. While it requires adherence to certain standards, it is generally less comprehensive in terms of capital, operational, governance, and consumer protection requirements compared to a full licensing regime. The HCMC maintains a public register of VASPs.

Greek Law: Greece has transposed the 5th and 6th EU Anti-Money Laundering Directives (AMLDs) into national law, primarily through Law 4557/2018 (Official Gazette A' 139/2018), as amended. This law identifies "providers of services of exchange between virtual currencies and fiat currencies" and "custodian wallet providers" as 'obliged entities' for AML/CTF purposes.

Registration: Such entities are required to register with the Hellenic Capital Market Commission (HCMC), which is designated as the competent authority for the supervision of Virtual Asset Service Providers (VASPs) for AML/CTF purposes. This registration is not a prudential license specifically for custody, but rather a registration to lawfully operate while fulfilling AML obligations.

Law 4557/2018: Articles 3(g) and 10(1) define "providers of services of exchange between virtual currencies and fiat currencies" and "custodian wallet providers" and subject them to AML/CTF obligations. (Access via Greek Government Gazette - note: direct English translation URLs for specific articles are often unavailable, but the law number and official gazette are the authoritative reference).

Current Greek Law: There are no specific Greek laws explicitly mandating segregation of client crypto assets from a custodian's own assets purely under the existing AML/CTF framework. AMLD focuses on identifying beneficial ownership and transaction monitoring, not prudential segregation.

Current Greek Law: No explicit Greek regulatory mandates for the use of cold storage for crypto assets. The AML/CTF framework focuses on identifying risks and implementing controls, not prescribing specific technological storage methods. However, robust security measures, which would typically include cold storage for a significant portion of assets, would be considered best practice to mitigate operational and security risks.

Current Greek Law: There is no specific definition of a "qualified custodian" for crypto assets under current Greek law. The term "custodian wallet provider" is used within the AML/CTF context, referring to entities that provide services to safeguard private cryptographic keys on behalf of their customers, to hold, store and transfer virtual currencies. This definition is for AML purposes, not a prudential "qualified custodian" designation akin to traditional finance.

Currently: Crypto custody providers in Greece are primarily subject to AML/CTF obligations under Law 4557/2018, requiring registration with the HCMC. There are no specific prudential rules for segregation, insurance, or cold storage for crypto custody yet.

Future (from December 30, 2024): The MiCA Regulation will directly apply. Crypto custody providers will need a full authorization from the HCMC as a CASP, and will be subject to strict rules on client asset segregation, professional indemnity insurance/own funds, and robust security/operational resilience (implicitly including secure storage practices like cold storage). These authorized entities will effectively be Greece's "qualified custodians" for crypto assets.

Upcoming MiCA Impact: With MiCA becoming fully applicable across the EU, including Greece, from late 2024, the Hellenic Capital Market Commission (HCMC) and the Bank of Greece will have more defined powers to license, supervise, and enforce against crypto-asset service providers (CASPs) for compliance with MiCA's requirements (consumer protection, market integrity, AML). This is expected to lead to more administrative enforcement actions in the future.

AML/CFT Focus: Greece, like other EU members, is subject to the EU's Anti-Money Laundering Directives. The Financial Intelligence Unit (FIU) has a role in AML/CFT, and while they issue guidance and receive suspicious transaction reports, specific public enforcement fines against crypto entities for AML lapses haven't been widely publicized compared to criminal busts.

Adoption: Greece transposed the 5th AMLD (Directive (EU) 2018/843) into national law primarily through Law 4734/2020, which amended the existing AML/CFT framework established by Law 4557/2018. This legislation brought Virtual Asset Service Providers (VASPs) under the scope of AML/CFT obligations, including requirements consistent with the FATF Travel Rule.

Law 4734/2020 was published in the Official Government Gazette (ΦΕΚ Α’ 199/09.10.2020) on October 9, 2020, and became effective upon its publication.

The Hellenic Capital Market Commission (HCMC), designated as the competent authority for supervising VASPs, subsequently established a register for VASPs, which became operational in early 2021, indicating active enforcement.

Greece, in line with the EU 5th AMLD and FATF Recommendations, requires VASPs to collect and verify originator and beneficiary information for transfers involving virtual assets equal to or exceeding €1,000.

For transfers below €1,000, VASPs are still expected to apply a risk-based approach and conduct due diligence, especially if there are suspicions of money laundering or terrorist financing.

Important Future Note: The upcoming EU Regulation on information accompanying transfers of funds and certain crypto-assets (Transfer of Funds Regulation - TFR, which will complement the MiCA Regulation) will introduce a zero-threshold for information collection (meaning all transfers, regardless of amount, must have originator and beneficiary information collected) but will maintain the €1,000 threshold for verification of that information. This regulation is expected to become fully applicable by late 2024/early 2025, further strengthening the Travel Rule in Greece and across the EU.

Register with the Hellenic Capital Market Commission (HCMC). The HCMC maintains a public register of registered VASPs.

Record Keeping: All collected information and transaction records must be retained for at least five (5) years after the transaction or termination of the business relationship, and up to ten (10) years if required by law or a competent authority.

Fines: Substantial monetary fines, which can range from thousands to several millions of euros, or up to 10% of the total annual turnover for legal entities in the preceding business year. For serious or repeated breaches, the fine can be even higher.

Individuals found responsible for money laundering or terrorist financing activities, or for intentionally facilitating such activities through non-compliance with AML/CFT duties, can face imprisonment and additional criminal fines.

Legal entities can also be subject to criminal sanctions, including significant fines and exclusion from public tenders.

Law 4557/2018 (Original AML Law): ΦΕΚ Α’ 139/30.07.2018 - https://www.kodiko.gr/nomothesia/document/21262/nomos-4557-2018 (Note: This is a legal database, not the direct gov.gr link, but provides the law content.)

Law 4734/2020 (Amending Law, including VASP provisions): ΦΕΚ Α’ 199/09.10.2020 - https://www.kodiko.gr/nomothesia/document/267720/nomos-4734-2020 (Again, a legal database showing the law content.)

Greek National Law: Law 4557/2018 (ΦΕΚ Α' 139/30.07.2018) transposed the 4th and 5th AMLDs into Greek law, establishing the legal framework for combating money laundering and terrorist financing for obliged entities, including VASPs. This law designates the Hellenic Financial Intelligence Unit (FIU) as the primary authority for receiving suspicious transaction reports and the Bank of Greece as a supervisory authority for VASPs regarding AML/CFT compliance.

Report any frozen assets to the relevant Greek authorities (e.g., Hellenic FIU, Bank of Greece) without delay.

Report suspicious transactions (STRs) to the Hellenic FIU if there are grounds to suspect money laundering or terrorist financing, which often involves a sanctions nexus.

Legal Basis: Greek Law 4557/2018 (Articles 40-45) and other specific laws implementing EU sanctions.

Imprisonment: Individuals (e.g., responsible VASP officers or directors) can face imprisonment for serious breaches, particularly those involving terrorist financing or significant money laundering. Sentences can range from several years up to 10 years or more, depending on the severity and intent.

Fines: The Hellenic FIU and the Bank of Greece can impose substantial administrative fines on VASPs for non-compliance. These can range from hundreds of thousands to several million euros, or a percentage of the VASP's annual turnover (e.g., up to 10% of total annual turnover for serious breaches), as per AMLD5 requirements.

Law 4557/2018 (ΦΕΚ Α' 139/30.07.2018) for AML/CFT and penalties. While a direct, freely accessible English translation URL is hard to provide, its official publication reference is essential. For official Greek gazette (ΦΕΚ) publications, a search on the National Printing Office website (Εθνικό Τυπογραφείο) would be required.

Entity Targeted: A large international organized crime group operating "boiler rooms" (call centers) that defrauded investors across Europe, including Greece, using fake cryptocurrency investments. Violation Type: Investment fraud, aggravated fraud, money laundering, participation in a criminal organization. Outcome: Multiple arrests (at least 15 in Greece, others internationally), dismantling of call centers, freezing of assets. Criminal proceedings are ongoing.

Entity Targeted: Individuals operating an illegal cryptocurrency mining farm. Violation Type: Theft of electricity, illegal operation. While not a direct "crypto violation," it's significant as it involves crypto-related activities leading to criminal charges. Outcome: Arrests, charges filed for electricity theft, seizure of equipment. Criminal proceedings.

Entity Targeted: Individuals involved in a fraudulent scheme that lured victims into investing in fake cryptocurrency platforms. Violation Type: Fraud, money laundering, establishment/participation in a criminal organization. Outcome: Arrests, ongoing investigations and criminal proceedings.

Legal Basis: Greek Law 4557/2018 (Articles 40-45) and other specific laws implementing EU sanctions.