---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "crypto_friendly"]
aliases: ["CY", "CYP", "Κύπρος / Kıbrıs"]
created: 2026-09-11
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"
  - name: "PwC Worldwide Tax Summaries: Cyprus individual income determination"
    url: "https://taxsummaries.pwc.com/cyprus/individual/income-determination"
    type: "secondary"
  - name: "Regulation (EU) 2023/1114 (MiCA)"
    url: "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    type: "official"
  - name: "curia.europa.eu"
    url: "https://curia.europa.eu/juris/liste.jsf?num=C-264/14"
    type: "reference"
  - name: "taxsummaries.pwc.com"
    url: "https://taxsummaries.pwc.com/cyprus/corporate/taxes-on-corporate-income"
    type: "reference"
---

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

> 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.

## 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 rate on gains from disposal of crypto-assets (from 1 January 2026); crypto acquired through mining excluded |
| Capital Gains (Corporate) | 15% standard corporate income tax rate (from 1 January 2026) |
| VAT on Crypto | No |
| Mining Tax | /not specified in source/ |
| Staking Tax | /not specified in source/ |
| Airdrop Tax | /not specified in source/ |

Exchanges of crypto for fiat currency are exempt from VAT under EU case law (CJEU C-264/14, Hedqvist).

## 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 (EU) 2023/1114 (MiCA); CySEC CASP authorisation |
| Ease | medium |
| Cost | $30,000 - $200,000 |
| Timeline | 4-12 months |

CySEC requires crypto service providers to register under the EU MiCA framework, ensuring compliance with transparency and market abuse prevention.

## Laws & Regulations

| Name | Year | Status | Scope |
|------|------|--------|-------|
| [Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1114) | 2023 | active | supranational |
| [Regulation (EU) 2023/1113 on Transfer of Funds and Certain Crypto-Assets (TFR)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1113) | 2023 | active | supranational |
| [Council Directive (EU) 2023/2226 (DAC8)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023L2226) | 2023 | active | supranational |
| [Regulation (EU) 2022/2554 on Digital Operational Resilience for the Financial Sector (DORA)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022R2554) | 2022 | active | supranational |
| [Directive (EU) 2018/843 (5th Anti-Money Laundering Directive)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018L0843) | 2018 | active | supranational |
| [Directive (EU) 2018/1673 on Combating Money Laundering by Criminal Law (6AMLD)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018L1673) | 2018 | active | supranational |
| [Regulation (EU) 2024/1624 on Anti-Money Laundering Requirements (AML Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32024R1624) | 2024 | active | supranational |
| [Commission Delegated Regulation (EU) 2024/2795 supplementing MiCA](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32024R2795) | 2024 | 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.
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.
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.
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.
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.
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.
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.
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.

## AML / KYC

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

## DeFi

**Status:** regulated

DeFi activities fall under the scope of MiCA and CySEC regulations, requiring compliance with existing crypto asset service provider rules.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under the EU MiCA framework, with specific transparency and operational requirements.

## 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 temperate climate favorable for operations. Infrastructure is rated good for data centers and internet connectivity.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 58/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |
| Sanctions Programs Active | No |

## 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 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.

### What is the FATF status of Cyprus?

Cyprus is classified by FATF as: 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: 2026-09-11.*

**Sources:**
- [CySEC](https://www.cysec.gov.cy)
- [EU MiCA Regulation](https://eur-lex.europa.eu)
- [PwC Worldwide Tax Summaries: Cyprus individual income determination](https://taxsummaries.pwc.com/cyprus/individual/income-determination)
- [Regulation (EU) 2023/1114 (MiCA)](https://eur-lex.europa.eu/eli/reg/2023/1114/oj)
- [curia.europa.eu](https://curia.europa.eu/juris/liste.jsf?num=C-264/14)
- [taxsummaries.pwc.com](https://taxsummaries.pwc.com/cyprus/corporate/taxes-on-corporate-income)