Cryptocurrency is a virtual currency that is developed using blockchain technology. Cryptocurrency is an internet-based medium exchange in which encryption techniques regulate the generation of currency units and verify funds’ transfer. Individual coin ownership records are also stored in a ledger existing in digital databases using healthy encryption methods that use a distributed ledger method to store the data or documents regarding this money’s transactions.
The Decentralized Feature
Advance cryptography is used in Cryptocurrency with a decentralized feature where no authority or financial department controls the transactions or other processes. It is a unique feature between normal and Cryptocurrency; the fiat currency is regulated by government authorities or monetary authorities accordingly. Using blockchain technology, Central control, or third-party interference between transactions is eliminated.
Cryptocurrency doesn’t exist in physical form, which means there is no need for paper or coins to represent it. The primary and fundamental feature of Cryptocurrency is it is volatile. The value of Cryptocurrency fluctuates with the time that is no one can predict its price at a particular time. Double spending is impossible using Cryptocurrency because Cryptocurrency can be used only once. Transactions using Cryptocurrency cannot be reversed, which means it is immutable, and the records stored in the ledger cannot be altered.
Advantages of using Cryptocurrency:
There are many benefits of using Cryptocurrency for transactions and transfer. The costs for transactions are low compared to other alternatives such as credit cards and debit cards, which can be reversed. Bird transactions using Cryptocurrency cannot be reversed means it can reduce fraudulent activities. International transactions using Cryptocurrency are accessible because it is adaptable that is Cryptocurrency can be converted into another form of Cryptocurrency or fiat currency has per user requirement.
Using Cryptocurrency, instant payments can be possible compared to everyday credit card payments that take days or weeks. Blockchain technology is used in Cryptocurrency, then the transfer of assets will happen using smart contracts are highly entry protocols ted and don’t need validators or third parties involved, makes the transaction more confidential as no one knows about the transaction details other than the sender and receiver.
History regarding the transaction’s financial records is kept in private, which protects from theft. A simple data connection is enough for Cryptocurrency transactions or exchanges and simple knowledge regarding it. As mentioned, it uses robust encryption methods, which makes the process more secure.
Cryptocurrency in Greece
Greece has its coordinates in the southeastern region of Europe and a member country of the EU. The Greek government and other European countries have to use innovative technologies to develop the land, including Cryptocurrency and other blockchain technologies, strategic tools for financial growth and well-being. Greek country people started to use online trading platforms and websites and were interested in using Bitcoin for transaction purposes.
The European Union (EU) take on Crypto
The European Union (EU) and countries wanted to support several blockchain technology innovations and people interested in such technologies as innovators, entrepreneurs, industries, and scientists. The EU blockchain observatory and form are formed to help the country regarding this blockchain technology to accelerate other innovations.
There aren’t any regulators or relevant approaches to regulating the Cryptocurrency trading in market professionals in Greece say that there isn’t any taxation on crypto transactions on mining activities. In Greek, people use the money on mobile assets as payments for their products or services.
Local Currencies v/s Cryptocurrencies
A notable difference between local currencies and cryptocurrencies as it isn’t issued or granted by any government but used for payments by the government within their respective users’ community. One cannot consider Cryptocurrency as e-money as Cryptocurrency doesn’t represent fiat money in digital form. Electronic money is nothing but an electronically stored monetary value.
The receipts are issued based on the funds for the purpose of making payment transactions that are accepted by nature, or legal person other than the electronic money is issuers, which is not the definition for Cryptocurrency as we know that Cryptocurrency is directly not equal to the fight currency prices and it fluctuates with time to time.
The Greece Law on Crypto
Recent law is incorporated in Greek legislation directive 2015/2266/EU, i.e., 4537/2018 regarding the payment services in the internal market for broadening of the definition of “payment services ” so that it includes notation such as “third-party payment service providers “and “payment initiation and services” and compromises some of the transactions carried out on a platform for exchanges of Cryptocurrency.
Still, most of the transactions of payments in the market conducted using traditional currencies and vice versa. Cryptocurrency doesn’t fall under the definition of event services, so Greek payment service law cannot be applied to search currencies. And also included in financial instruments is Cryptocurrency, characterized as a payment method with names of financial instruments that cannot be used.
Those who use Cryptocurrency for exchange doesn’t fall under the constitution investment service providers. There is no particular regulator for Acquirer to regulate crypto transactions and legislation or guidelines to govern them, making it unable to identify which kind of product or marketing is recording to crypto assets.
The Tax Rules
But the person that wanted to do business related to Cryptocurrency, then the income they derived from the business should be taxed .even Cryptocurrency user who uses the Bitcoins for the transaction by which they gain some personal income. Then it is subjected to income tax as they are not using such Cryptocurrency for buying goods or services but for trading or other activities.
This tells that there is no tax on Cryptocurrency, but there may be a tax for their income from using Cryptocurrency. The Greek tax authority currently doesn’t have any guidelines for taxes on the income derived from crypto transactions because there are no regulatory frameworks and relevant procedures in their legislation to impose a tax on Cryptocurrency users directly.
The business is established based on Cryptocurrency is also a business activity. Such enterprises are taxed according to their income based on the business tax guidelines or graduated tax scale provided by the law. And Cryptocurrency users who again revenue using Cryptocurrency are considered a capital income subjected to a tax of individual income.
Potential users for Cryptocurrency are increasing day to day, and crypto industries are developing throughout many countries. Some of the countries are welcoming it, and some are against its rising popularity among their citizen. In Greek, their authority is taking Cryptocurrency seriously, which is developing after the financial crises. Cryptocurrencies such as Coinbase, Etoro, Bity, and Coinmama are the most popular in Greece.
Transactions are conducted using cryptocurrencies without any taxation. Their government can’t be sure what the nature of those transactions; thus, cryptocurrencies are escapes from taxes or duties or to engage in illicit commerce. If this reaches a point where it started to influence the country’s economy, then the government will pass national laws to control the growth accordingly. There is currently no regulatory framework and applicable methods to impose a tax on the income derived from crypto/ICO transactions or other related activates within the Greek tax legislation.
However, taxes are imposed on Cryptocurrency users based on their capital income regardless of their arrival. The Cryptocurrency market is still in its initial stage as the knowledge regarding this currency is less among people, and most people always preferring to use fiat money or electronic money for payment purpose