---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "moneyval", "crypto_friendly"]
aliases: ["CY", "CYP", "Κύπρος / Kıbrıs"]
created: 2026-06-01
updated: 2026-02-01
compile_into: ["[[country--cyprus]]"]
sources:
  - name: "CySEC"
    url: "https://www.cysec.gov.cy"
    type: "official"
  - name: "EU [[concept--mica|MiCA]] Regulation"
    url: "https://eur-lex.europa.eu"
    type: "official"
---

# 🇨🇾 [[country--cyprus|Cyprus]] (CY) — Crypto Regulation

> Cyprus has emerged as a crypto-friendly EU jurisdiction with a growing number of licensed CASPs under MiCA. CySEC actively regulates crypto investment services, and the island has attracted numerous crypto firms due to its favorable tax regime and English-speaking business environment.

## Overview

| Field | Value |
|-------|-------|
| Status | crypto_friendly |
| Risk Score | 15/100 (Low Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--europe|europe]] |
| Currency | [[entity--eur|EUR]] |
| Adoption Rank | #25 |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 8% flat income tax on disposal gains for individuals under Article 20E of the Income Tax Law, effective 1 January 2026 (enacted 22 December 2025, published Official Gazette 31 December 2025). CGT continues to apply only to immovable property; crypto disposals are now taxed under a separate income tax provision, not CGT. Losses offset only same-year crypto gains; no carry-forward. |
| Capital Gains (Corporate) | 8% flat income tax on crypto disposal gains for companies under Article 20E, effective 1 January 2026. General corporate income tax rate increased from 12.5% to 15% under the 2026 reform; however, crypto disposal gains are carved out under the specific 8% Article 20E regime. Mining income remains subject to the general 15% corporate rate. |
| VAT on Crypto | No |
| Mining Tax | Mining income is explicitly excluded from the 8% Article 20E flat tax regime. Mining receipts are taxed as ordinary income: 15% corporate income tax for companies (rate increased from 12.5% in 2026 reform), or progressive personal income tax rates up to 35% for individuals. When mined coins are later disposed of, the 8% flat tax applies only to appreciation above the receipt-day fair market value. |
| Staking Tax | Taxed as income at applicable personal or corporate rates |
| Airdrop Tax | No specific guidance; likely taxed as income if received in course of business |

Cyprus does not levy capital gains tax on the sale of crypto assets by individuals (CGT applies only to gains from disposal of immovable property). Corporate entities pay 12.5% on crypto trading profits. The IP box regime and non-domicile status offer additional tax planning opportunities.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | CySEC (for CASPs/MiCA Title II/III/V/VI); Central Bank of Cyprus (for EMT issuers under MiCA Title IV) |
| Framework | Markets in Crypto-Assets Regulation (MiCA); CySEC CASP Registration |
| Ease | medium |
| Cost | $30,000 - $200,000 |
| Timeline | 4-12 months |

CySEC has been actively registering CASPs and transitioning to full MiCA authorization. Cyprus was one of the first EU countries to implement a national CASP registration. CySEC has approved numerous crypto-related CIF licenses for firms offering crypto CFDs and derivatives.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | largely_compliant |

## DeFi

**Status:** regulated

Under MiCA, DeFi protocols with identifiable operators may require CASP authorization. CySEC follows ESMA guidance on DeFi regulation. Fully decentralized protocols remain in a grey area.

## Stablecoins

**Status:** specific_framework

MiCA stablecoin framework applies. ARTs and EMTs require authorization from CySEC or the Central Bank of Cyprus respectively.

## NFTs

**Status:** Unclear

MiCA excludes unique NFTs but covers fungible-like NFTs. CySEC follows ESMA guidance on NFT classification.

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.18/kWh |
| Renewable Energy | 30% |
| Climate | temperate |
| Infrastructure | good |

Mining is legal with moderate electricity costs and a good infrastructure environment. Renewable energy accounts for about 30% of electricity supply.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 55/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

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.

## CBDC Status: preparing

## FAQ

### Is cryptocurrency legal in Cyprus?

Cyprus has emerged as a crypto-friendly EU jurisdiction with a growing number of licensed CASPs under MiCA. CySEC actively regulates crypto investment services, and the island has attracted numerous crypto firms due to its favorable tax regime and English-speaking business environment.

### What is the FATF status of Cyprus?

Cyprus is classified by FATF as: largely_compliant.

### Are VASPs licensed in Cyprus?

Yes, licensing is required for VASPs.

### What is the AML/KYC regime in Cyprus?

KYC is mandatory for crypto businesses.

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-06-01.*

**Sources:**
- [CySEC](https://www.cysec.gov.cy)
- [EU MiCA Regulation](https://eur-lex.europa.eu)