Cyprus follows the EU Markets in Crypto-Assets Regulation (MiCA) providing a clear regulatory framework for crypto assets and services. The Cyprus Securities and Exchange Commission (CySEC) oversees crypto asset service providers with registration requirements under the CySEC CASP regime.
| Status | crypto_friendly |
| Risk Score | 15/100 (Low Risk) |
| Region | europe |
| Currency | EUR |
| Adoption Rank | #25 |
| Capital Gains (Personal) | /not specified in source/ |
| Capital Gains (Corporate) | /not specified in source/ |
| VAT on Crypto | Yes |
| Staking Tax | /not specified in source/ |
| Airdrop Tax | /not specified in source/ |
The regulator page does not specify detailed crypto tax rules; VAT applies to crypto transactions as per EU rules.
| Required | Yes |
| Regulator | CySEC (for CASPs/MiCA Title II/III/V/VI); Central Bank of Cyprus (for EMT issuers under MiCA Title IV) |
| Framework | CySEC CASP Registration under MiCA |
| Ease | medium |
| Cost (USD) | $30,000 - $200,000 |
CySEC requires crypto service providers to register under the EU MiCA framework, ensuring compliance with transparency and market abuse prevention.
| Name | Year | Status | Scope |
| Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA) | 2023 | Active | supranational |
| Establishes a comprehensive EU framework for crypto-asset service providers (CASPs), stablecoin issuers (ART/EMT), and trading platforms; prohibits market abuse in crypto-assets; full application from 30 December 2024. | |||
| Regulation (EU) 2023/1113 on Transfer of Funds and Certain Crypto-Assets (TFR) | 2023 | Active | supranational |
| Extends FATF Travel Rule to crypto-asset transfers; requires CASPs to collect and transmit originator/beneficiary information for all transfers, removing the EUR 1000 threshold; applies from 30 December 2024. | |||
| Council Directive (EU) 2023/2226 (DAC8) | 2023 | Active | supranational |
| Amends Directive 2011/16/EU to require mandatory automatic exchange of information on crypto-asset transactions held by EU tax residents; CASPs must report to national tax authorities from 1 January 2026. | |||
| Regulation (EU) 2022/2554 on Digital Operational Resilience for the Financial Sector (DORA) | 2022 | Active | supranational |
| Mandates ICT risk management, incident reporting, third-party provider oversight, and digital operational resilience testing for financial entities including CASPs covered by MiCA; applies from 17 January 2025. | |||
| Directive (EU) 2018/843 (5th Anti-Money Laundering Directive) | 2018 | Active | supranational |
| First EU directive to bring crypto-asset exchange services and custodian wallet providers within AML/CFT scope; introduced KYC obligations and registration requirements for Virtual Asset Service Providers. | |||
| Directive (EU) 2018/1673 on Combating Money Laundering by Criminal Law (6AMLD) | 2018 | Active | supranational |
| Harmonises criminal-law definitions and penalties for money laundering across EU member states; establishes minimum custodial sentences and corporate liability rules applicable to crypto-related ML offences. | |||
| Regulation (EU) 2024/1624 on Anti-Money Laundering Requirements (AML Regulation) | 2024 | Active | supranational |
| Replaces 5AMLD/6AMLD with a single AML Regulation directly applicable in all member states; tightens KYC/CDD requirements for CASPs and sets EUR 1000 cash-equivalent threshold for crypto transactions; phased application 2027. | |||
| Commission Delegated Regulation (EU) 2024/2795 supplementing MiCA | 2024 | Active | supranational |
| MiCA Level 2 delegated act setting regulatory technical standards on information requirements and procedures for competent authority notifications under MiCA; part of the MiCA implementation package applicable from December 2024. | |||
CySEC has issued warnings against unlicensed crypto platforms and suspended licenses for AML failures. In 2025, CySEC took action against entities offering crypto services without registration.
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | compliant |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities fall under the scope of MiCA and CySEC regulations, requiring compliance with existing crypto asset service provider rules.
Status: regulated
Stablecoins are regulated under the EU MiCA framework, with specific transparency and operational requirements.
Status: Unclear
MiCA excludes unique NFTs but covers fungible-like NFTs. CySEC follows ESMA guidance on NFT classification.
| Legal | Yes |
| Electricity Cost | $0.18/kWh |
| Renewable Energy | 30% |
| Infrastructure | good |
Mining is legal with moderate electricity costs and a temperate climate favorable for operations. Infrastructure is rated good for data centers and internet connectivity.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 58/100 |
| Banking Access | open |
| Sanctions Program Active | No |
Risk Factors
Cyprus is politically stable with good internet freedom and open banking access for crypto businesses. Corruption index is moderate at 58. Regional tensions in Eastern Mediterranean pose some risk but overall environment is favorable for crypto operations.
Cyprus follows the EU Markets in Crypto-Assets Regulation (MiCA) providing a clear regulatory framework for crypto assets and services. The Cyprus Securities and Exchange Commission (CySEC) oversees crypto asset service providers with registration requirements under the CySEC CASP regime.
Cyprus is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-11 · Data source: Soken Crypto Legal Map
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