Anyone looking to cash out large amounts from cryptocurrencies—or if there are indications of money laundering—will now be required to declare the source of their funds. The era of uncontrolled digital money transactions is coming to an end as the government establishes clear rules and obligations for those converting their crypto holdings into euros. Under the new Finance Ministry bill on capital markets, cashing out significant amounts in cryptocurrencies will no longer be possible without strict scrutiny of the funds’ origin.

Currently, cashing out cryptocurrencies is a straightforward process. For example, someone who owns Bitcoin or Ethereum can transfer them from their digital wallet to an exchange platform like Binance or Coinbase, sell them for euros, and then deposit the money into their bank account. These transactions are subject to minimal oversight, allowing users to move large sums without having to declare the source of their funds. However, this will change drastically under the new framework.

End of Anonymity

Those looking to cash out large sums will have to provide personal and tax details, including tax identification numbers, bank accounts, and proof of asset acquisition. Anonymity is now a thing of the past, and those converting substantial amounts of crypto into euros will face rigorous scrutiny.

Under the new bill, the process becomes much stricter. For example, if someone wants to cash out €10,000 from cryptocurrencies, the transaction will not be completed immediately. The exchange platform will be required to report the transaction to Greek authorities, who will cross-check the user’s financial records. If the source of funds cannot be justified or if the user has not declared prior transactions, authorities will have the right to block the transaction and initiate a “source of funds” investigation. The exact limits for transactions that will be subject to scrutiny will be determined in a later phase, depending on the regulations to be implemented.

The new framework mandates that transactions be cross-checked to identify suspicious money transfers. If a transaction is deemed suspicious or exceeds a specific threshold, authorities will conduct a financial and asset audit on the user. If no suspicious activity is found, the conversion of crypto to euros will proceed as normal. However, if there are indications of tax evasion, the case will be referred for further investigation, and a full “source of funds” audit may be required. In some cases, authorities may even block the transaction altogether.

Stricter Regulations

Particular attention is being given to the licensing of crypto exchanges, with platforms such as Binance, Coinbase, and Kraken required to obtain an official operating license from Greek authorities. Without such a license, they will be prohibited from providing services in Greece, and users who conduct transactions through unlicensed exchanges will face penalties. The bill introduces severe fines of up to €5 million or 12% of annual turnover for violations, while providing crypto services without a license could result in at least one year of imprisonment. Additionally, the names of those attempting to bypass the new regulations will be made public to warn investors and prevent transactions with suspicious providers.

New, stricter advertising rules for cryptocurrencies will also be implemented to ensure investors are well-informed about the risks involved in crypto transactions. Platforms and service providers will be required to include clear warnings about the volatility of cryptocurrencies, lack of guaranteed returns, and the absence of state protection or coverage by guarantee funds. Furthermore, advertisements must not be misleading or overly optimistic, omitting key information that could influence investors’ decisions. Regulatory authorities will have the power to monitor and impose penalties on ads that fail to comply with the new regulations.

The new regulatory framework is not limited to Greece but aims to establish international cooperation to prevent the transfer of illicit funds through crypto platforms operating outside the country.