Is Crypto Legal In Cyprus?

Cryptocurrency is legal in Cyprus under regulations aligned with European Union directives, primarily governed by the Prevention and Suppression of Money Laundering Law which defines crypto-assets and regulates service providers. The Cyprus Securities and Exchange Commission serves as the primary regulatory authority, requiring all Crypto-Asset Service Providers operating professionally from or in Cyprus to register under anti-money laundering and counter-terrorist financing requirements (1). Cyprus implemented the EU's Markets in Crypto-Assets Regulation on December 30, 2024, establishing comprehensive licensing requirements for all entities providing crypto-asset services (1).

CySEC ceased accepting new CASP applications under the AML Law in October 2024 in anticipation of MiCA implementation, shifting to a preliminary assessment phase for applications under the new regulatory framework. The regulator announced in November 2024 that it would accept applications and notifications for preliminary assessment, allowing authorized entities such as investment firms and market operators to notify CySEC under Article 60 of MiCA, or new legal entities to apply for CASP authorization under Article 63 (2). Registration under the previous AML framework required an initial fee of €10,000, with annual fees of €5,000 waived for the first year, while the licensing process typically took four to six months from submission (1).

"The Markets in Crypto Assets Regulation took effect in June 2023, with Cyprus set to integrate it into local law by December 30, 2024."

Activities regulated under Cyprus law include exchange services for crypto-to-fiat and crypto-to-crypto transactions, custody services involving management and safekeeping of crypto-assets or cryptographic keys, and direct token sales by issuers. Borrowing, lending, yield generation, and staking services remain unregulated unless they involve custody of third-party crypto-assets (1). The Central Bank of Cyprus has clarified that cryptocurrencies are not legal tender and repeatedly issued warnings about risks including price volatility and security concerns, while capital gains tax on cryptocurrency trading profits remains at 0% though income from regular trading activities faces corporate tax at 12.5% (2).

Source:
https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/cyprus
https://www.lawyersincyprus.com/cryptocurrency-regulations-in-cyprus/

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.