The clock is ticking on the public consultation on the bill to strengthen the Capital Market, with its provisions expected to be unveiled later this week. The draft law includes interventions in the Stock Exchange, a tighter framework for cryptocurrencies and targeted regulations to reduce private debt. At the same time, a special tax regime for cryptocurrencies will be brought forward later this year.

The key elements of the bill to strengthen the Capital Market are:

– Incentives to enhance the effective functioning of the Stock Exchange: These include measures to encourage demand and the listing of new companies on the Stock Exchange to increase liquidity and market competitiveness.

– Thresholding of supervisory mechanisms: The powers and competences of the Capital Market Commission and the Bank of Greece are strengthened, in line with best international and European practices, for more effective market supervision.

Cryptocurrencies

The bill establishes rules to protect investors in cryptocurrencies by enhancing transparency and imposing stricter controls to prevent illegal activities. Supervision of crypto markets will be entrusted to either the Capital Market Commission or the Bank of Greece, while a criminal provision for illegal transactions is also introduced.

Already, European Regulation 2024/1114 (MiCA) has come into force, establishing uniform rules for:

– Transparency in public offerings and trading of cryptocurrencies,

– The licensing and supervision of crypto service providers,

– The protection of investors and the prevention of market manipulation

Private debt

On the private debt side, the bill includes five interventions, with a central focus on raising the thresholds for inclusion in the out-of-court mechanism.

Specifically:

– The income and property criteria for inclusion in the out-of-court mechanism are doubled, provided that the debts do not exceed 300,000 euros.

– Mandatory proposal of arrangement by creditors before the auction, at least three months before the auction.

– Discharge of debtors without bankruptcy proceedings: a judge will be able to determine the complete cancellation of debts if the debtor’s assets are insufficient.

– Extension of the deadlines for vulnerable debtors to join the interim first home protection program.

– Settlement of loans with a state guarantee and through business reorganisation.

The bill also includes a regulation for the victims of “Aspis Pronia“, providing for the creation of a permanent compensation mechanism. The Private Life Insurance Guarantee Fund (PILF) will be able to make advances to policyholders, up to 25% of its available funds, ensuring faster compensation.