Cyprus

As a member of the European Union, Cyprus maintains a cryptocurrency-friendly approach. Nevertheless, it lacks dedicated legislation specifically for the cryptocurrency market and doesn't classify cryptocurrencies as legal tender or currency. Instead, these digital assets are viewed akin to virtual or digital commodities, much like gold or other precious metals.

This interpretation means that while crypto payments are permissible in Cyprus, they are not mandatory for either businesses or individuals. Parties choosing to accept or transact in cryptocurrencies for the acquisition of goods or services must comply with the same regulatory and taxation structure that governs traditional payment methods.In accordance with the Cyprus Tax Department, cryptocurrencies fall under the category of intangible assets for taxation purposes. Consequently, any financial gains or losses resulting from the sale or usage of cryptocurrencies are subject to a 20% capital gains tax. However, if the asset is held for over a year, it is exempted from this tax.

Despite Cyprus taking strides towards recognizing and regulating crypto-assets, there remains potential for further clarification and advancement regarding their legal status and treatment. The Cyprus Securities and Exchange Commission (CySEC) has signaled its intent to cultivate a comprehensive legal framework for crypto-assets, aligning with the EU's proposed standards and regulations.