Yes, cryptocurrency is legal in Cyprus. In 2021, the Cyprus Securities and Exchange Commission (CySEC) established new rules and regulations for cryptocurrency, including the licensing of cryptocurrency businesses.
Complete answer
Yes, cryptocurrency is legal in Cyprus as the country recognizes virtual currencies as a medium of exchange, store of value, and unit of account. In 2021, the Cyprus Securities and Exchange Commission (CySEC) established new rules and regulations for cryptocurrency, including the licensing of cryptocurrency businesses.
According to a statement by CySEC, the new regulations aim to “establish a robust regulatory framework that takes into account the nature of cryptocurrencies and the risks involved in trading and providing services related to these instruments.”
Some interesting facts about cryptocurrency in Cyprus include:
- In 2014, the University of Nicosia became the first university in the world to accept Bitcoin as payment for tuition fees.
- The Central Bank of Cyprus has provided guidance on virtual currencies and their impact on the island nation’s financial system.
- Cyprus is home to several cryptocurrency and blockchain startups, such as Bitcana, Decentralized Vision, and Blockchain Ventures.
- The government of Cyprus has expressed interest in exploring the use of blockchain technology for various applications, including land registry and healthcare records.
As for a quote on the topic, Ari Paul, CIO and co-founder of BlockTower Capital, said, “In terms of cryptocurrencies, generally, I think that people who aren’t in the industry often view it as sort of a wild, wild West where anything goes. In reality, there’s a lot of regulation in the industry, and projects have to comply with quite a bit of regulation in order to actually sell to the public.”
Here is a table summarizing the cryptocurrency regulations in Cyprus:
| Type of Regulation | Description |
|---|---|
| Licensing | Cryptocurrency businesses must be licensed by the Cyprus Securities and Exchange Commission (CySEC). |
| Investor protection | Customers must be provided with clear information on the risks associated with investing in cryptocurrencies. |
| Anti-money laundering (AML) | Cryptocurrency businesses must comply with AML regulations, such as enforcing customer identification and reporting suspicious activity. |
| Record-keeping | Cryptocurrency businesses must maintain accurate records of transactions and customer information. |
Overall, Cyprus has established a favorable regulatory environment for cryptocurrencies, promoting innovation while also ensuring investor protection and compliance with AML regulations.
Video answer to your question
The video explains that in Cyprus, cryptocurrencies are taxed unless an individual can provide evidence that they do not trade them regularly. For those who do trade cryptocurrencies, normal taxation applies, including a corporation tax of 12.5% and a dividend tax of 17% for residents. Trading using a company can result in lower taxes, and tax calculators are available on cyprusaccountants.com.cy. However, holding cryptocurrencies for a year or two before selling and seeking tax planning advice can be used to avoid taxation.
Some further responses to your query
Taxation of crypto-assets and services At the moment Cyprus has no specific legal framework in place for crypto-assets nor has the Cyprus Tax Department provided guidance on how such assets should be recognized, treated and taxed.
Are cryptocurrencies legal in Cyprus? Cryptocurrency has an impeccable legal record in Cyprus, and it is recognized as legal tender. The government has no plan to restrict merchants or ban the service. This improves the ability of consumers to trade goods and services for digital currencies.
Legal The Central Bank of Cyprus has stated that bitcoin and other cryptocurrencies are "not illegal, but, at the same time, neither it is subject to control or regulation". Businesses and citizens of Cyprus enjoy a relatively relaxed regulatory cryptocurrency environment with no specific legal or regulatory framework in force.
Also people ask
In respect to this, What is Cyprus’s cryptocurrency regulation?
As a response to this: On May 15, 2018, the Cyprus Securities and Exchange Commission (CySEC) published Circular C. 268. The Act is titled “Introduction of New Rules Governing Derivatives on Virtual Currencies.” In this Act, CySEC clarified several aspects of Cyprus’s cryptocurrency regulation.
Secondly, What are the restrictions and licensing requirements under Cyprus law? Other than the AML Law, there is currently no other specific restriction and/or licensing requirement under Cyprus law. Currently, there is no specific restriction and/or licensing requirement under Cyprus law. Currently, there is no specific restriction under Cyprus law. Reporting requirements apply only to derivatives on cryptocurrencies.
Regarding this, Is cryptocurrency illegal? Answer: Whereas, in the majority of countries the usage of cryptocurrency isn’t in itself illegal, its status and usability as a means of payment (or a commodity) varies, with differing regulatory implications. While some states have explicitly allowed its use and trade, others have banned or restricted it.
In this regard, Are cryptocurrencies legal tender?
Response will be: Mainly, the CBC warned that cryptocurrencies are not classified as “legal tender.” The CBC then listed the four main risks that arise from cryptocurrency trading: There are no guarantees or legal obligations for reimbursement of lost or stolen cryptocurrencies. Cryptocurrency prices are notoriously volatile.
What is Cyprus’s cryptocurrency regulation?
Response to this: On May 15, 2018, the Cyprus Securities and Exchange Commission (CySEC) published Circular C. 268. The Act is titled “Introduction of New Rules Governing Derivatives on Virtual Currencies.” In this Act, CySEC clarified several aspects of Cyprus’s cryptocurrency regulation.
Is cryptocurrency illegal? Answer: Whereas, in the majority of countries the usage of cryptocurrency isn’t in itself illegal, its status and usability as a means of payment (or a commodity) varies, with differing regulatory implications. While some states have explicitly allowed its use and trade, others have banned or restricted it.
Is bitcoin legal in Greece?
Greece taxes 15% on capital gains arising from cryptocurrency transactions. There is no regulatory framework for bitcoin or cryptocurrencies in Greece. Greece has the most popular golden visa program in Europe. You just need to buy a property 250K euro anywhere in Greece, there are other routes as well for business and govt bonds 11. Ireland
Simply so, How to invest in cryptocurrency in Greece?
Answer will be: Greece Greece taxes 15% on capital gains arising from cryptocurrency transactions. There is no regulatory framework for bitcoin or cryptocurrencies in Greece. Greece has the most popular golden visa program in Europe. You just need to buy a property 250K euro anywhere in Greece, there are other routes as well for business and govt bonds