Greek Tax Authority Scrutinizes Crypto Liquidation into Banks

The Dispute Resolution Directorate of the Independent Authority for Public Revenue issued a ruling regarding cryptocurrency liquidation into the domestic banking network. The ruling determined that incoming credits may be classified as unexplained wealth accumulation if documentation is insufficient to establish an audit trail linking the deposit to verifiable investment history. For example, an 18,000 euro deposit was treated as unexplained wealth and taxed at 33%, plus a 50% penalty on the assessed tax, totaling 49.5% of the gross amount. This ruling has impacted the Greek crypto ecosystem.

The ruling introduces significant tax and penalty risks for individuals liquidating cryptocurrencies and transferring funds into the banking system. The high effective tax rate, which can exceed 49% on smaller amounts, creates substantial regulatory uncertainty for crypto market participants and payment platforms involved in these transactions.