FinTech Regulation and the Greek Public Sector

The rapid growth of financial technology (FinTech) has introduced significant regulatory challenges for public sectors across the European Union, particularly as digital finance becomes integrated into government operations. The European Union has established a comprehensive regulatory framework, including PSD2, eIDAS, GDPR, and MiCA. However, the transposition of PSD2 (a directive) and the implementation of eIDAS, GDPR, and MiCA (directly applicable regulations) at the national level remain complex and partial. This paper examines the FinTech regulatory landscape in Greece, focusing on its implications for the public sector. The study is based on a theoretical analysis of legal texts, policy documents, and academic literature. The analysis reveals that Greece has transposed PSD2 and implemented eIDAS, GDPR, and MiCA with reasonable timeliness, but implementation lags substantially due to fragmented institutional coordination, limited supervisory capacity, and the digital divide. Recent developments, such as MiCA implementation and the evolution of digital identity systems, further highlight the need for adaptive regulatory strategies. The paper develops a three-criteria analytical framework—regulatory alignment, institutional capacity, and practical application—that can be used to assess FinTech implementation across EU member states. Applying this framework to Greece reveals that while the country achieves full regulatory alignment for PSD2, eIDAS, and GDPR, it demonstrates limited institutional capacity and practical application. For MiCA, while regulatory alignment is achieved, institutional capacity is inadequate and practical application is weak.