What is Cyprus's FATF status?

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.

🇨🇾 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.

Overview

Status	crypto_friendly
Risk Score	22/100 (Low Risk)
Region	europe
Currency	EUR
Adoption Rank	#25

Tax Information

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
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 & Registration

Required	Yes
Regulator	CySEC
Framework	Markets in Crypto-Assets Regulation (MiCA); CySEC CASP Registration
Ease	medium
Cost (USD)	$30,000 - $200,000

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.

Enforcement Activity

Level: Moderate

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.

AML / KYC

KYC Required	Yes
Travel Rule	Yes
FATF Member	No
FATF Status	compliant
FATF Body	MONEYVAL
Suspicious-Activity Reporting	Yes

DeFi, Stablecoins & NFTs

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

Legal	Yes
Electricity Cost	$0.18/kWh
Renewable Energy	30%
Infrastructure	good

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

Geopolitical Risk

Stability	stable
Sanctions	No
Corruption Index	58/100
Banking Access	open

Cyprus is politically stable with no international sanctions. It has moderate corruption levels and a favorable environment for crypto businesses with good banking access.