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

Abstract The impact of cryptocurrency taxation policies on decision making among individuals in Greece is the focus of this research. The content includes three essential elements: tax clarity, tax rates, and compliance and incentives that investors need to participate in cryptocurrency markets. The research used an exploratory quantitative method, collecting 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 uncertainty, which leads them to refrain from investing. The market becomes less liquid because high taxation rates decrease both the number of market transactions and the total amount of trading activities. High tax compliance complexity further contributes to the problem, as it increases administrative burdens and perceived investment risks. On the other hand, tax credits and deductions increase market involvement and promote the long-term holding of cryptocurrencies. The study further recommends improving the existing taxation structure to support cryptocurrency investment in Greece. Reducing compliance burdens, adjusting tax rates, and granting specific incentives may positively influence investor confidence and market indicators. There are calls for Greece to liberalise taxation laws, reduce taxes, and offer incentives such as tax relief for those who hold cryptocurrencies long term. Improving tax transparency and reducing the compliance burden will help expand the market and strengthen regulation.