THE EFFECT OF CRYPTOCURRENCY TAXATION POLICIES ON INDIVIDUAL INVESTMENT DECISIONS IN GREECE
THE EFFECT OF CRYPTOCURRENCY TAXATION POLICIES ON INDIVIDUAL INVESTMENT DECISIONS IN GREECE

Summary/Abstract: The impact of cryptocurrency taxation policies on decision making among the individuals in Greece is the focus of this research. The content includes three essential elements which are tax clarity and tax rates and compliance and incentives that investors need to participate in cryptocurrency markets. The research used an exploratory quantitative method which collected data through a structured questionnaire from 384 Greek investors who invested in cryptocurrency markets. To establish the effects of taxation policies on investment behaviour, descriptive statistics and multiple regression analysis were used on the collected data. The research results show that investors base their investment decisions on tax clarity because unclear tax rules create doubt about their investments which leads them to stay away from investing. The market becomes less liquid because high taxation rates decrease both the number of market deals and the total amount of trading activities. High tax compliance complexities contribute to the problem as they add more overheads and perceived risks to investment. On the other hand, tax credits and deductions increase market involvement and promote the holding of cryptocurrencies for long periods. The study further recommends the improvement of the existing taxation structure to accommodate the buoyant Cryptocurrency investment in Greece. Reduction of compliance burdens, changes in tax rates, and granting of specific incentives positively influence the investor confidence and market indicators. There are calls on Greece to liberalise taxation laws, cut taxes in the country ad offer incentives like tax relief for those who hold cryptocurrencies for the long-term. Improving tax transparency and reducing the burden of compliance little will help expand the market and strengthen regulation.

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