How Cypriots Access Cryptocurrency Exchanges in 2026

When it comes to buying and trading cryptocurrency, Cypriots don’t face the same roadblocks as people in countries with outright bans. But that doesn’t mean it’s simple. The system is strict, layered, and built to keep things legal - not necessarily easy. If you live in Cyprus and want to trade Bitcoin, Ethereum, or any other digital asset, you need to understand the rules before you even open an app.

Cyprus Lets You Trade Crypto - But Only Through Licensed Platforms

Cryptocurrency isn’t legal tender in Cyprus. That means you can’t use Bitcoin to pay for your coffee or buy a car at a dealership. But you can buy, sell, and hold it - as long as you do it through a platform registered with the Cyprus Securities and Exchange Commission (CySEC) CySEC is the official financial regulator in Cyprus responsible for licensing and supervising crypto-asset service providers under EU law.

Since late 2024, all crypto exchanges operating for Cypriots must hold a Crypto-Asset Service Provider (CASP) A CASP is a licensed entity authorized to offer services like exchange, custody, or trading of crypto-assets under EU MiCA regulation license. This isn’t just a local rule - it’s part of the Markets in Crypto-Assets (MiCA) MiCA is the EU’s comprehensive regulatory framework for crypto-assets, harmonizing rules across all member states since June 2023, which fully took effect in Cyprus by December 30, 2024.

Before MiCA, some local exchanges tried to operate under loose national rules. Now, those are gone. If a platform doesn’t have a CASP license, it’s not allowed to serve Cypriot customers. That includes big global names like Binance or Kraken - unless they’ve registered under MiCA in Cyprus or another EU country.

How to Find a Licensed Exchange

You can’t just pick any exchange and start trading. You need to verify it’s on the official list. Go to the CySEC CASP Register - yes, it’s public. Search for the exchange by name. If it’s not there, walk away.

Most Cypriots use exchanges that are licensed in the EU and have chosen Cyprus as their operational base. These include:

• Bitpanda - licensed in Austria, serves EU customers including Cyprus
• Bybit - registered under MiCA with a CASP license in Cyprus as of early 2025
• OKX - obtained CASP status in 2024 and now offers services to Cyprus residents
• LocalBitcoins - peer-to-peer trading still allowed, but sellers must comply with AML rules

Some Cypriots still use platforms like Coinbase, which is licensed in the EU but doesn’t have a dedicated CASP license in Cyprus. That’s okay - MiCA allows cross-border service. As long as the exchange is licensed in one EU country, it can serve all others.

What Happens When You Sign Up?

Forget anonymous sign-ups. Every exchange serving Cyprus requires full Know Your Customer (KYC) KYC is the process of verifying a customer’s identity using government-issued ID and proof of address. You’ll need:

• A valid government ID (Cyprus passport, EU ID card, or driver’s license)
• Proof of address - a recent utility bill or bank statement with your name and Cyprus address
• A selfie holding your ID (some platforms require this)

For transactions over €1,000, exchanges must also check you against EU and UN sanctions lists. If your name pops up - even by accident - your account gets frozen until you clear it with CySEC. That’s happened to a few people who share names with sanctioned individuals. It’s frustrating, but it’s the law.

Some platforms ask for extra proof - like a screenshot of your bank account showing your name and address. Don’t be surprised. They’re required to keep full records for at least five years.

Payment Methods: What Works in Cyprus

Not all payment options are equal. Here’s what Cypriots actually use:

• SEPA Bank Transfer - the most common. Fast, cheap, and trusted. Takes 1-2 business days.
• Debit/Credit Cards - Visa and Mastercard work on most licensed platforms. Fees are higher, but instant.
• Bank Wire - used for larger deposits. Slower, but accepted by all CASPs.
• PayPal - rarely accepted. Most exchanges block it due to chargeback risks.
• Cash or P2P - possible on LocalBitcoins or Paxful, but risky. Sellers must still report transactions over €1,000.

One thing you won’t see: cryptocurrency deposits as a way to fund your account. Exchanges in Cyprus don’t allow you to deposit BTC to buy ETH. They want fiat on-ramps only. This is to prevent money laundering through crypto-to-crypto swaps.

Taxes: The Good News

Here’s where Cyprus stands out. As of 2026, there is no capital gains tax on cryptocurrency profits. If you bought Bitcoin for €5,000 and sold it for €12,000, you keep the full €7,000 profit. No tax. No reporting. No forms.

This makes Cyprus one of the most crypto-friendly places in Europe for individual traders. Compare that to Germany (30% tax after one year) or France (30% flat rate). Cyprus doesn’t even tax crypto-to-crypto trades.

But - and this is important - if you’re running a business trading crypto regularly, you might fall under corporate tax rules. For most people holding and trading casually, it’s completely tax-free.

Who’s Watching? The Regulatory Web

CySEC isn’t alone. Three other agencies are involved:

• Central Bank of Cyprus (CBC) The CBC issues public warnings about crypto risks and confirms crypto is not legal tender - they remind people crypto isn’t backed by the government.
• MOKAS MOKAS is Cyprus’s financial intelligence unit that receives and analyzes suspicious transaction reports from exchanges - they get alerts when someone buys €10,000 in crypto in one day.
• European Banking Authority (EBA) The EBA sets EU-wide AML standards that Cyprus must follow - they ensure Cyprus doesn’t become a lax hub.

If you’re doing small trades under €1,000, you’re unlikely to get flagged. But if you’re moving large sums frequently, expect a call from your exchange asking for source of funds. That’s normal. Answer honestly. Refusing = account closure.

The Innovation Hub: Where Regulation Meets Progress

CySEC runs something called the Innovation Hub The Innovation Hub is a CySEC initiative that guides startups on regulatory compliance and fosters responsible crypto innovation in Cyprus. It’s not a loophole - it’s a support system. Startups working on crypto wallets, DeFi tools, or tokenized assets can get direct advice from regulators before launching.

This means Cyprus isn’t just enforcing rules - it’s trying to build a legitimate crypto ecosystem. That’s why more international exchanges are choosing Cyprus as their EU base. It’s not just about taxes. It’s about clarity.

What Doesn’t Work Anymore

Here’s what you can’t do in 2026:

• Use unlicensed exchanges - they’re blocked by local banks and ISPs.
• Use VPNs to access foreign exchanges - many now detect and block Cyprus IPs.
• Deposit crypto to fund your account - fiat only.
• Trade anonymously - KYC is mandatory for all users.

Some people still try to use non-EU platforms like Binance (before its MiCA registration) or KuCoin. Those platforms don’t serve Cyprus anymore. If you try, you’ll get an error message. Your money might get stuck. Your account could be frozen.

Bottom Line: It’s Regulated, Not Restricted

Cypriots have more access to crypto than most people think. The system isn’t perfect - it’s slow, paperwork-heavy, and sometimes frustrating. But it’s legal, safe, and transparent.

If you’re starting out:

1. Choose a CASP-licensed exchange from CySEC’s register.
2. Complete full KYC - have your ID and proof of address ready.
3. Use SEPA or card payments - avoid PayPal or crypto deposits.
4. Keep records of all trades - even though there’s no tax, you’ll need proof if asked.
5. Never use unlicensed platforms - they’re not worth the risk.

Cyprus didn’t ban crypto. It didn’t ignore it. It built a system around it. And for those who follow the rules, it works.

If you're new to crypto in Cyprus, start small. Use a licensed exchange. Do your KYC. Stick to SEPA transfers. Keep your records. The system is designed to protect you - not stop you. Just follow the steps, and you’ll be trading safely in under 48 hours.