Is crypto legal in Cyprus?
Cryptocurrency is legal in Cyprus, but subject to regulatory restrictions.
Western Asia · CY · 4 of 9 dimensions sourced
Cyprus crypto policy at a glance
Stage of the central bank digital currency programme — research, pilot, or launched.
Whether crypto is legal, restricted, or banned for individuals and businesses.
“The Central Bank of Cyprus wishes to inform the public that Bitcoin is not legal tender... The purchase, holding and trading of virtual currencies is not regulated by the Central Bank of Cyprus or any other authority in Cyprus at present.”
Whether the jurisdiction licenses crypto/VASP service providers.
Rules governing stablecoin and e-money-token issuance.
“Virtual currencies are not legal tender in the Republic of Cyprus. Users of virtual currencies, including so‑called ‘stablecoins’, are not covered by any deposit guarantee or investor compensation schemes in Cyprus and such products are not subject to authorisation or prudential supervision by the Central Bank of Cyprus.”
How crypto gains are taxed and reported, including OECD CARF participation.
“Profits arising from the disposal of cryptocurrencies are, as a rule, subject to income tax where such activity constitutes trading in the ordinary course of business. Where the cryptocurrency is held as a capital asset, any gain on disposal may fall within the scope of capital gains tax if it concerns assets specified in the Capital Gains Tax Law, otherwise it is exempt from capital gains tax but may still be taxable as income depending on the facts and circumstances.”
How decentralized finance (DeFi) is treated by regulators.
Whether NFTs are addressed in regulation.
Policy toward crypto mining — permitted, restricted, or banned.
Intensity of regulatory enforcement actions against crypto firms.
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