Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Summary: In Cyprus, the most effective method for investing in Bitcoin and other cryptocurrencies involves using exchanges that comply with the Cyprus Securities and Exchange Commission (CySEC) or pertinent European regulations. These authorized platforms facilitate deposits in Euro (EUR), accommodating widely-used Cypriot payment methods like bank transfers, as well as credit or debit cards.
Our evaluation of the top 5 exchanges for Cypriot users centers on safety and dependability. These chosen services provide a credible and knowledgeable route for individuals in Cyprus seeking to engage in the cryptocurrency market.
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Best Cryptocurrency Exchanges in Cyprus
Our thorough evaluation of over 20 cryptocurrency platforms identifies the top five for Cypriot investors. This analysis prioritizes compliance with Cyprus Securities and Exchange Commission (CySEC) standards and relevant European guidelines, offering a diverse array of digital assets, user-friendly interfaces, support for Euro (EUR) transactions, and clear fee structures. For Cypriot investors seeking a suitable platform aligned with their investment needs, our concise guide below is essential.
eToro stands as the leading investment platform in Cyprus, offering an extensive range of over 4,500 financial instruments. This selection includes prominent cryptocurrencies like Bitcoin, Ethereum, and Solana, as well as major stocks such as Coinbase and Microstrategy. This diverse portfolio enables Cypriot investors to efficiently diversify their investments using a single, fully regulated platform.
Renowned for its intuitive interface and seamless Euro (EUR) deposit options, eToro operates under strict regulation by major European authorities, affirming its reliability in Cyprus. The platform provides many investment choices with various deposit methods, including bank transfers, SEPA, credit/debit cards, and other local options. eToro’s dedication to low commissions and competitive spreads makes it a top choice for digital asset investors.
- Fees: eToro uses a variable spread fee model, typically around 1%.
- Supported Assets: eToro's portfolio encompasses over 4,500 assets, highlighting leading cryptocurrencies, ETFs, and stocks.
- Regulatory Compliance: eToro follows standards set by key European financial regulators, including CySEC and other relevant authorities.
- EUR Deposit Methods: Options cover bank transfers, debit/credit cards, and other Cypriot-preferred methods.
Earning the second spot in our crypto exchange evaluation is Bybit. This platform caters to all investors, particularly those interested in options and perpetual futures contracts. Bybit's expansive selection, featuring over 1,000 digital assets, coupled with swift Euro deposit options, aligns well with the diverse requirements of the Cypriot market. The platform is acclaimed for its easy-to-navigate interface and robust security measures.
Bybit extends beyond cryptocurrencies, offering futures contracts with up to 25x leverage, and an evolving NFT marketplace, thereby expanding the trading possibilities for crypto enthusiasts. With competitive maker fees of only 0.01% and taker fees at 0.06%, and adherence to stringent European regulatory standards, including CySEC, Bybit stands as a highly dependable choice for traders.
- Fees: Maker fees at a low 0.01%, with taker fees maintained at 0.06%.
- Supported Cryptocurrencies: Offers a comprehensive range of over 1,000 digital assets.
- Regulation & Licensing: Complies with European regulatory frameworks (including CySEC) and is operational in over 180 countries.
- Euro Deposit Methods: Includes a diverse array of options such as SEPA transfers, bank transfers, debit and credit cards, Google Pay, and 20 other methods.
Occupying the third spot in Cyprus' crypto arena, Uphold brings a diverse portfolio of over 250 digital assets for buying, selling, and staking, fully in line with Cyprus financial regulations. Uphold serves as a strong alternative to eToro and Kraken, particularly excelling in quick and economical Euro deposit options that include Bank Transfer, Debit Card, and Credit Card, among others.
What sets Uphold apart is its audited proof-of-reserves, a feature that offers real-time data to show how customer funds are safeguarded, thereby confirming a 1:1 backing of all assets. This unparalleled level of transparency positions Uphold as one of the most secure and reliable exchanges in Cyprus.
- Fees: A 1% trading fee and a 1% spread fee apply.
- Supported Assets: 250+ cryptocurrencies, 4 precious metals, and 27 fiat currencies.
- Regulation & Licensing: Uphold adheres to financial regulations applicable in Cyprus.
- Euro Deposit Methods: Bank Transfer, SEPA, Google Pay, Apple Pay, Credit/Debit Card, and other prevalent payment methods.
Claiming the fourth position in Cyprus' crypto market, OKX is geared primarily towards institutional investors, delivering an array of advanced trading instruments, a wide range of cryptocurrencies, and competitive fees. The platform offers diverse trading types, including futures, options and margin trading. OKX also operates an OTC desk, offering bespoke services and a smooth onboarding process for institutional accounts and family offices.
OKX sets itself apart with a strong focus on security, featuring among the safest and most rigorously audited staking services. With stringent adherence to Cyprus' financial regulations and comprehensive API options, OKX emerges as an appealing choice for institutional investors seeking a reliable and technologically robust platform.
- Fees: Makers are charged 0%, and takers incur a 0.2% fee. A standard 0.1% fee applies to instant spot trading.
- Supported Assets: Over 300 cryptocurrencies, including leveraged trading options for experienced traders.
- Regulation & Licensing: While originally based in Seychelles, OKX complies with financial regulations applicable in Cyprus.
- Euro Deposit Methods: Options include Bank Transfer, Credit/Debit Card, and other commonly used payment mechanisms.
Kraken secures the fifth position in Cyprus' cryptocurrency exchange rankings, showcasing significant quarterly trading volumes. The platform has tailored its services to suit Cypriot traders, providing access to over 250 cryptocurrencies, including sought-after assets like Bitcoin, Ethereum, and Litecoin, as well as various rising tokens.
The platform focuses on enhancing user experience, demonstrated by its top-rated mobile apps on both the App Store and Google Play. Kraken also offers staking services, allowing Cypriot users to earn rewards up to 25% annually (APY). Additionally, Kraken Pro, its sophisticated trading interface, is designed for both individual and institutional traders in Cyprus, featuring low spreads, substantial liquidity, and high deposit limits.
- Fees: Maker Orders at 0.16% and Taker Orders at 0.26%.
- Supported Assets: Access to over 250 spot markets and 100+ margin trading markets.
- Regulation & Licensing: Adheres to Cyprus's financial regulations while initially focusing on the U.S.
- Euro Deposit Methods: Includes Bank Transfers, Credit/Debit Cards, and other popular payment methods.
Is Crypto Regulated in Cyprus?
In Cyprus, cryptocurrency regulation commenced with the amendment of the Anti-Money Laundering (AML) Law, defining "Crypto-Assets" and regulating Crypto-Asset Service Providers (CASPs). CASPs, offering services ranging from crypto-asset exchanges to the management and safekeeping of these assets, must register with the Cyprus Securities and Exchange Commission (CySEC) for anti-money laundering purposes. This regulatory approach positions Cyprus as a favorable destination for crypto-asset related businesses and investors.
Despite these developments, challenges persist due to the volatility and unregulated nature of crypto-assets. The Central Bank of Cyprus and CySEC have issued warnings highlighting the risks, such as lack of legal tender status, price volatility, and potential misuse for illegal activities. The implementation of the EU's Regulation on Markets in Crypto-Assets (MiCA) in 2023, expected to be integrated into Cyprus’s national law by 2024, aims to harmonize and strengthen the regulatory framework across the EU, addressing these concerns.
How is Crypto Taxed in Cyprus?
In Cyprus, cryptocurrency taxation hinges on specific rules. Funds from Initial Coin Offerings (ICOs) are taxable, leveraging Cyprus's low corporate tax rate of 12.5%. The Value-Added Tax (VAT) treatment, primarily based on European Court of Justice rulings, exempts traditional currency exchanges for Bitcoins from VAT. Security Tokens may avoid both corporate tax and VAT, depending on their classification as equity or debt liability.
For individuals, the Cyprus Income Tax Office taxes crypto gains as income, adding them to the gross salary. This is subject to Progressive Income Tax (PAYE), ranging from 20% for income over €19,500 to 35% for amounts exceeding €60,000. The classification of crypto transactions as ongoing trading activities or as one-off capital transactions is critical. Regular trading activities are taxable, while one-off capital transactions are not. The distinction between trading and capital activities is essential for determining tax liability on crypto transactions in Cyprus.
In summary, Cyprus offers a well-regulated cryptocurrency investment environment, tailored to local and European standards. Our review of leading exchanges like eToro and Bybit showcases their suitability for Cypriot investors, with diverse digital assets, easy Euro transactions, and compliance with CySEC regulations. This insight is vital for navigating Cyprus's crypto market, considering its unique tax landscape and the evolving regulations under the Anti-Money Laundering laws and the EU's MiCA.