---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "moneyval", "crypto_friendly"]
aliases: ["CY", "CYP", "Κύπρος / Kıbrıs"]
created: 2026-04-13
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 | 22/100 (Low Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--europe|europe]] |
| Currency | [[entity--eur|EUR]] |
| Adoption Rank | #25 |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 0% on crypto gains for individuals (CGT applies only to immovable property in Cyprus) |
| Capital Gains (Corporate) | 12.5% corporate income tax on crypto trading profits |
| VAT on Crypto | No |
| Mining Tax | Taxed as business income at 12.5% corporate rate or personal income tax rates |
| 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 | [[entity--cysec|CySEC]] |
| 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 | 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 | 58/100 |
| 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: exploring

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-04-13.*

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