---
type: country
domain: web3-compliance
status: compiled
tags: [Legal, EU Regulation, Crypto Tax, Crypto Regulation, Country]
aliases: [Cyprus]
created: 2026-04-23
compile_into: ""
slug: country--cyprus
sources: "[./crypto-map/data.json#/CY, \"https://soken.io/crypto-map/countries/cyprus.html\"]"
source_url: "https://soken.io/crypto-map/countries/cyprus.html"
title: "Cyprus — Crypto Regulation 2026 | Soken"
description: Cyprus has emerged as a crypto-friendly EU jurisdiction with a growing number of licensed CASPs under MiCA.
scraped_at: "2026-04-23T20:03:12.781891+00:00"
entry_type_raw: country
region: europe
---

# Cyprus — Crypto Regulation 2026 | Soken

# 🇨🇾 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

|     |     |
| --- | --- |
| 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

|     |     |
| --- | --- |
| Required | Yes |
| Regulator | CySEC |
| Framework | Markets in Crypto-Assets Regulation (MiCA); CySEC CASP Registration |
| Ease | medium |
| Cost | $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.

## 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

|     |     |
| --- | --- |
| Legal | Yes |
| Electricity | $0.18/kWh |
| Renewable | 30% |
| Infrastructure | good |

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

## Geopolitics

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

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

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