No it is set to UTC (Coordinated Universal Time). No one cares about Greenwich or Britain any more. Oh and they aren't the same (UTC is from atomic clock sources, GMT is from solar observation and less accurate).
And I assume you and most of the other posters do. I live in Australia (UTC +10 here on the east coast) and so converting from PST or UTC is about the same difficulty.
And my preference would be for just UTC. I have no idea why MMO companies seem to think their customers give a rats what local time is, especially given the time zone disparity in the US alone.
Rather amusingly, they have actually started quoting the time relative to and specifically mentioning GMT - so I guess people still do use it ROFL. Take a look at the log in screen right now. Sweet irony.