Nicosia: Europe’s Oldest Capital, Web3’s Youngest Hub

Nicosia is a city with a complex political history: since 1974, it has remained the last divided capital in Europe, separated by a UN buffer zone between the Greek and Turkish parts of the island. However, even in such an unstable geopolitical situation, Nicosia is positioning itself as a technological hub for the Mediterranean Web3 community.

According to the 2024 Chainalysis Global Crypto Adoption Index report, Cyprus is listed among the expanding jurisdictions with high crypto activity.

The combination of favorable tax policies, transparent regulation, and proximity to EU markets is drawing crypto startups, venture funds, and digital infrastructure projects to Nicosia. Notable local players include MAP FinTech, eToro Europe, and Quonota.

Cypriot Rulebook: Regulation and Taxation

The primary regulator of the crypto market in Cyprus is the Cyprus Securities and Exchange Commission (CySEC). It is responsible for:

• Issuing CASP licenses;
• Enforcing AML/KYC compliance;
• Implementing EU legislative provisions.

Since 2024, the EU’s Markets in Crypto-Assets (MiCA) regulation has come into effect, establishing a unified standard for crypto projects across the bloc. Cyprus was quick to align with the new framework: a CySEC license is now mandatory for all CASPs (Crypto-Asset Service Providers), and anti-money laundering requirements have become significantly stricter.

The tax system in Cyprus remains attractive, offering several key features relevant to both individuals and businesses:

• Cryptocurrency is not recognized as legal tender but is treated as an intangible asset.
• Crypto sales by individuals are tax-exempt, provided the activity is not conducted on a regular, business-like basis.
• Mining and staking income may be classified as self-employment income and is subject to taxation.
• Corporate income tax stands at 12.5%, one of the lowest rates in the EU.
• Capital gains tax on crypto sales does not apply, unless the assets are tied to real estate.
• VAT on crypto transactions is not charged, except in cases involving the provision of services.

This makes the country an appealing launchpad for startups. For instance, in 2025, MoonGate Labs relocated its headquarters from Singapore to Cyprus, citing greater legal clarity and regulatory transparency in the jurisdiction.

Web3 Locations in Nicosia: From Coworking Spaces to Crypto ATMs

While Nicosia’s crypto community is relatively small, it plays an active role in shaping the city’s digital vibe and driving the growth of tech infrastructure, education, and Web3 entrepreneurship.

Spaces:

• Gravity Ventures — a coworking hub in the heart of the city, with a strong focus on fintech and blockchain. It brings together local DeFi startups and law firms specializing in smart contracts.
• CyRIC Innovation Hub — an accelerator supported by the European University Cyprus. It partners with projects in digital identity and the Internet of Things (IoT).
• Hub Nicosia — a multifunctional venue hosting Web3 workshops and ethical hacking events. A go-to space for youth-oriented blockchain meetups.

Crypto ATMs

As of May 2025, Nicosia hosts 12 crypto ATMs, according to bcash.eu. The main operators are Bcash and General Bytes. Most machines support transactions with BTC, ETH, and USDT, and allow crypto purchases using cash. The most frequently used ATM is located in Mall of Cyprus.

Events

• Decentralized Conference Cyprus — A major event featuring experts from across the EU and Israel, organized in partnership with the University of Nicosia.
• Blockchain Fest Cyprus — An annual trade, analytics, and investor forum attracting over 2,000 participants in recent years.
• HackCyprus — The largest student hackathon in the country; the 2025 edition includes a dedicated track on zk-technologies and on-chain governance.
• International Conference on Blockchain and Cryptocurrencies (ICBC) — Scheduled to take place in Nicosia on August 23 and November 4, 2025.

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Where to Pay with Crypto: From Coffee Shops to Rentals

Direct crypto payment adoption in Nicosia remains limited, but for crypto enthusiasts determined to “live on crypto only,” there are still a few viable options.

Some venues accept BTC and ETH through payment processors like CoinPayments or NOWPayments.

• Silver Pot (Onasagorou Street) — a café where you can pay for your coffee in BTC.
• Crypto Design Lab — a digital design studio accepting USDT and DAI, offering services such as NFT brand design.

Crypto cards from Binance, WhiteBIT, and Crypto.com work at all merchants that accept Visa or MasterCard. Accommodation can be booked with crypto via the Travala platform, and local landlords often agree to USDT-only rental arrangements upon request.

Where to Live in Nicosia: From City Center to Suburbs

Nicosia may be compact, but its neighborhoods vary significantly in lifestyle and pricing.

• Old Town

One-bedroom apartments start at €1000/month. This is the historic core of the city, lined with cafés, designer boutiques, art galleries, and coworking spaces. Perfect for those who want to live at the heart of the action, within walking distance of iconic landmarks.

• Engomi

Studios start at €1200/month. A young, tech-forward district home to university campuses and startup offices. Well-equipped for English-speaking residents and entrepreneurs—though it’s worth noting the area is known for its vibrant nightlife.

• Aglantzia

Rental prices start at €800/month. A green and peaceful district located near the Athalassa forest reserve. Ideal for remote workers and those who value quiet surroundings. The main downside is its proximity to the UN buffer zone, which means a visible military and police presence in the area.

• Strovolos 

Rent starts at €700/month. A well-developed residential suburb featuring schools, playgrounds, and small parks. A great fit for families with children and anyone looking for a long-term living option.

Must-visit Locations for Tourists and Expats in Nicosia

Nicosia offers digital nomads more than just internet access and crypto services—it delivers a rich cultural backdrop:

• Cyprus Museum

The island’s primary archaeological institution. A must-see for those seeking deeper historical context, featuring artifacts dating back to the Neolithic and Bronze Ages.

• Ledra Street

A rare opportunity to cross the UN buffer zone separating the southern and northern parts of the city. One of the few pedestrian border checkpoints in Europe is located here.

• Faneromeni Square

A vibrant, bustling area filled with street performers, artists, and local craft stalls. Surrounded by historic architecture, the square is a favorite hangout for students and freelancers—perfect for an authentic crypto-detox.

• Academia Park

A go-to spot for morning jogs and Zoom calls under the open sky. Frequently hosts workouts, yoga sessions, and gatherings for local tech and IT communities.

Nicosia might be right for you if you:

• Are launching a startup in the EU and value flexible regulation;
• Prefer a warm climate paired with well-balanced infrastructure;
• Are planning a long-term stay without overstretching your budget.

Nicosia might not be the best fit if you:

• Crave the buzz of a major metropolis and a nonstop nightlife scene;
• Aren’t ready to deal with the quirks of Cypriot bureaucracy or its banking system;
• Need crypto events on the scale of New York or Hong Kong.