Cyprus adopts EU instant payment and crypto AML rules

In June 2025 Cyprus adopted three financial laws that align it with EU Regulation 2024/886 on instant credit transfers in euros and extend anti-money laundering (AML) rules to cryptocurrency transactions, Eurofast reports.

Instant payments

All payment service providers in Cyprus, including non-bank institutions and fintech companies, must offer instant payments in euros by 2027. Real-time verification of the beneficiary before each transfer will also become mandatory, which is meant to reduce fraud.

AML rules for crypto

The AML amending law, Law 96(I)/2025, was published in the Official Gazette on 18 June 2025, Harneys notes. It:

• includes crypto-asset service providers (CASPs) in the definition of a "financial institution";
• implements the "travel rule" of EU Regulation 2023/1113, which requires sender and recipient information to accompany crypto transfers;
• gives supervisors powers to sanction non-compliance;
• requires central contact points for CASPs established in Cyprus without a branch.

According to Eurofast, the reforms also give more authority to the Central Bank of Cyprus and CySEC and require enhanced due diligence for transactions involving crypto exchanges or cross-border digital assets. Harris Kyriakides notes that the law brings Cyprus's AML legislation fully into line with EU Regulations 2023/1113 and 2023/1114.

The cash limit already in force

Since December 2024, cash payments for goods, services and real estate in Cyprus are limited to €10,000; larger amounts must be paid by traceable methods, with fines of up to 10% of the transaction, Harris Kyriakides notes.

This article is for information only and is not tax or legal advice.