The Greeks are “gambling” 15 billion Euro in cryptocurrencies – Pitfalls and new context –

Table of Contents

• 1 The companies
• 2 No control
• 3 The promises
• 4 Regulatory framework
• 5 **How effective do you believe the ⁤EU’s ​MiCA Regulation will ⁤be in addressing the concerns raised about‌ cryptocurrency fraud and lack of regulation in Greece, and what additional measures⁢ might‌ be necessary?**

At the time his re-election Donald Trumpwho pledged to make the US “the cryptocurrency capital of the planet”, led to a “crypto rally” with the market capitalization in question surpassing $3.2 trillion. dollar and bitcoin 1.8 trillion. dollar marking historical highs, in Greece it is said that more than 150,000 investors bet more than 15 billion. euros, looking for their “digital treasure”.

However, several thousand have fallen victim to fraud by online platforms – “ghosts” that “fish” unsuspecting citizens, although they are not allowed to provide our country with investment services, as well as to hold investors’ money.

Moreover, the market is essentially unregulated, while based on the existing institutional framework, the Capital Market Commission e.g. checks mainly cases of money laundering or terrorism, while the vast majority of these platforms are not even registered in its registers in order not to receive checks.

The companies

It is characteristic that only 12 companies active in the field of cryptocurrencies are currently registered in the registers of the Capital Market Commission, of which 11 provide exchange services for virtual and fictitious currencies and a total of 12, together with one more, provide custody services for digital wallets.

It should be noted that even this partially institutionalized control of the Commission today limited and is likely to further limit their number, as a short time ago they ranged from 18 companies. On the other hand, of the three companies that had ATMs in Greece connected to at least one digital “wallet” (wallet), which stores cryptocurrencies, only one has remained due to violations, having a nationwide network.

No control

Typical are e.g. cases where machines issued a proof of transaction and some companies instead of transferring the digital currencies to the customer’s electronic “wallet” proceeded to the exchange in order to buy in a second time other cryptocurrencies, which were traded on a digital exchange in another part of the world.

Of course, there are those who are placed directly with large platforms, at a time when the institutional framework does not seem to be able to control the flow of money today.

At the same time, more than 100 “ghost” companies, for which the Capital Market Commission has issued relevant warnings, as well as many others, using (unbeknownst to them) even powerful figures of political and economic life have defrauded thousands of citizens. In just one incident involving mostly Northern Greece, victims reportedly exceeded 10,000, investing in a platform allegedly based in Nevada, USA, which was in the form of a pyramid and offered high returns on a daily basis.

At some point they would claim their winnings, the deposit to their account would be delayed and finally their account on the platform would be deactivated, resulting in the loss of their money.

The promises

In general, unlicensed persons who appear to be knowledgeable about financial matters claim to represent legitimate, reliable licensed investment firms and promise “safe investments” with “high returns”, luring prospective investors into investing through unlicensed online trading platforms.

Most of the time these online platforms are not real, as the data displayed on them (“investments”, “accounts”, “trades”, “profits”, “losses”) are virtual. The money “invested” in them is not directed to the market of financial instruments on behalf of the investors nor is it deposited in the accounts of the real beneficiaries, but through complex electronic routes it ends up in accounts for the benefit of organized criminal groups. In the end, their account on the platform is deactivated and communication with these persons is abruptly interrupted, resulting in the loss of their money. Assessing companies (with whom prospective investors intend to work or are working) regarding their licensing and regulatory status could save fortunes. And while some lost their money, they were getting phone calls from someone who introduced themselves as “Georgios Hatjinikitas” and appeared as an executive of the Capital Market Commission who undertook to return (apparently with the compensation) the money they lost.

Regulatory framework

Things are set to change in the new year, as Greece has until December 30, 2024 to incorporate the key provisions of the MiCA Regulation on Cryptocurrency Markets, the EU’s first regulatory framework for cryptocurrencies. Full control of the market and the companies operating in Greece will be undertaken by the Capital Market Commission together with the Bank of Greece, as the acceptance of an instrument as a currency presupposes the reliability and trust of all traders. Besides, we are moving to the adoption of private currencies with blockchain technology without central governance or under the management of technology or Fintech companies, while the adoption of the digital euro is also expected at some point.

Cryptocurrencies are a new reality, which cannot be treated with ostriches, reports the financial staff, which is in the process of developing a fair institutional framework for their taxation, although it seems that it will take a long time before the irregularities of the due to purchase.