The Press Office of the Ministry of National Economy and Finance issued the following announcement:
Regulations for the protection of cryptocurrency holders, informing investors about the characteristics and risks of crypto-assets available on the market, ensuring the stability of the financial system and exploiting the opportunities arising for individuals and businesses from the internationally observed growth of crypto-assets, are included in Regulation 2023/1114 on markets in crypto-assets ("Markets in crypto-assets" / ''MiCA'') which entered into force on 30 December 2024.
It should be noted that the new Regulation does not eliminate the risk of investments in crypto-assets, the prices of which fluctuate sharply up or down. It is also underlined that, despite the new provisions introduced by the MiCA Regulation, the level of protection - as pointed out by the European Securities and Markets Authority - is weaker than that applicable to traditional investment products.
In addition to the provisions of the Regulation, which have already entered into force, the government, with the bill for strengthening the Capital Market presented on Friday to the Council of Ministers, is proceeding with the adoption of additional measures to protect investors in crypto-assets. The same bill designates competent supervisory authorities for cryptocurrencies, as the case may be, the Hellenic Capital Market Commission or the Bank of Greece and includes a criminal provision for illegal activity. Moreover, as already announced, a more specific legislative framework will be implemented in 2025 for the taxation of crypto-assets, which are investment products.
The new Regulation applies to three categories of crypto-assets, which are the following:
-Crypto-assets aimed at stabilising their value by reference to a single fiat currency ("e-money tokens").
-Crypto-assets that aim to stabilise their value in relation to another security or right, or a combination thereof, including one or more fiat currencies ("asset-referenced tokens").
-Crypto-assets other than asset-referenced tokens and e-money tokens.
Some of the measures adopted are:
- Issuers of e-money tokens should ensure that holders of such tokens can exercise their redemption right at any time and at par value of the currency to which those tokens refer. This is a right that already applies to e-money holders, but not to all e-money tokens that either do not currently give such a right or place restrictions on the redemption period.
- Issuers of crypto-assets are required to inform potential investors by issuing a 'white paper', i.e. a specific document containing general information about the issuer and its legal form, the offer to the public of crypto-assets or their admission to trading, the plan to be implemented with the capital raised and the rights and obligations attached to the crypto-assets, the underlying technology used for those crypto-assets, and the associated risks. The aim is to clearly inform investors about the characteristics, functions and risks of the crypto-assets they intend to buy. If the White Paper is not issued or if the information contained therein is unclear or misleading, the offer to the public of crypto-assets will be prohibited.
- Civil liability rules are laid down for offerors and admissions to trading, and for members of their management, in respect of the information published in the crypto-asset white paper.
- To address risks to the financial stability of the wider financial system, issuers of asset-referenced tokens should have a minimum level of own funds. They should also establish and maintain a reserve of assets corresponding to the risks associated with crypto-assets. If issuers choose to invest part of that reserve, they should invest it in safe, low-risk, liquid assets.
- To reduce the risk of asset-referenced tokens being used as "value depositories", it is prohibited to grant interest to their holders linked to the duration of possession.
- Where crypto-assets constitute a serious source of risks to the smooth functioning of payment systems, financial stability, the conduct of monetary policy and monetary stability, central banks will be able to request the competent supervisory authority to withdraw the authorisation of the issuer of such assets.
- To ensure investor protection, crypto-asset service providers advising on crypto-assets should assess whether crypto-assets are suitable for the investors concerned, taking into account their knowledge and experience, objectives and financial situation, and risk tolerance.