Is Cyprus thriving or is Forbes missing the bigger picture?

Forbes Cyprus just reposted a glowing piece on Cyprus' so-called economic momentum on LinkedIn, painting a picture of stability, growth and strategic reforms. Originally the article was created by The Future Media and according to them, everything's on the up and up: GDP is soaring, unemployment is at record lows and the government is making all the right moves. Sounds great, right?

Well, not so fast. There’s a much bigger, much darker story that Forbes conveniently left out. One that calls into question the very foundation of Cyprus' supposed economic success.

A financial hub with a dangerous blind spot

The article touts Cyprus’ credit rating upgrade and commitment to fiscal responsibility, but what it doesn’t mention is how much of the country’s financial sector is entangled with unregulated online gambling and high-risk payment service providers (PSPs).

As we pointed out in our March 4, 2025 article, Cyprus is a key gateway for offshore gambling operators that target European players while sidestepping local laws. The payment processors based in Cyprus (like Deloraze Limited and Medium Rare Limited – Stake ) are actively handling transactions for platforms licensed in places with virtually no oversight. Curacao, Anjouan, Kahnawake; these are the types of jurisdictions these platforms operate out of, where consumer protections are basically nonexistent.

This isn't speculation. It’s happening in broad daylight. Yet, Forbes and the Cypriot government act like this isn’t a problem.

The regulatory dodging act

Cyprus has a long history of just barely dodging consequences when it comes to financial crime.

In 2013, it barely survived a financial meltdown due to its deep connections to Russian money laundering. The EU bailout forced some reforms, but only enough to keep things looking clean on paper. By 2021, Cyprus was almost slapped with an FATF greylisting for weak AML enforcement. Again, last-minute adjustments saved the day, but the underlying problems never really went away.

Now, here we are in 2025 and the same patterns are repeating.

If you think the EU, ECJ and FATF aren’t paying attention, think again. If these regulators decide Cyprus has pushed its luck too far, the fallout won’t be pretty.

The illusion of a strong economy

Forbes celebrates Cyprus’ record-low unemployment rate of 4.9%, calling it a sign of economic strength. But let’s be real: Where’s this job growth actually coming from?

A huge chunk of it is tied to sectors that most EU regulators would shut down in a heartbeat: forex trading, crypto payments and unregulated gambling payment processing. These industries aren’t exactly known for long-term stability or ethical business practices.

When Cyprus says it's fostering economic growth, what it’s really doing is playing host to businesses that can’t operate under stricter jurisdictions. It’s not about innovation or sustainability; it’s about loopholes.

What happens when the house of cards collapses?

Forbes' optimism ignores what happens if the rest of the EU finally decides it’s had enough. If Cyprus keeps acting as a safe haven for shady financial operations, it’s not a matter of if the regulators step in, but when.

And when that happens, Cyprus could be facing:

• Severe EU penalties if countries like Germany, Austria or the Netherlands take legal action over Cyprus' role in enabling illegal gambling.
• FATF grey or blacklisting, which would cripple Cyprus’ financial sector and make it a no-go zone for legitimate international banking.
• Loss of EU banking privileges, which could force Cypriot financial institutions to cut ties with the very PSPs that fuel the economy right now.

A gamble Cyprus might not win

Forbes Cyprus wants us to believe Cyprus is a financial success story, but success built on regulatory evasion and high-risk industries aren’t real success. It’s a gamble. And if history has taught us anything, it’s that these kinds of bets don’t end well.

Cyprus has spent years walking a fine line, trying to keep up the appearance of legitimacy while profiting from high-risk financial activity. But the EU’s patience is running out and when the crackdown comes; there won’t be an easy way out this time.

So is Cyprus really thriving? Or is it just buying time before everything falls apart?

FAQs

Why is Forbes Cyprus' portrayal of Cyprus' economy misleading?
Forbes Cyprus focuses on economic growth but ignores the risks tied to unregulated gambling and financial loopholes.

How is Cyprus connected to unregulated online gambling?
Many payment service providers (PSPs) in Cyprus process transactions for offshore gambling platforms with little oversight.

What are the risks of Cyprus’ reliance on high-risk industries?
Cyprus' economy depends on forex, crypto, and gambling sectors that could collapse under EU regulatory pressure.

Has Cyprus faced financial scrutiny before?
Yes, Cyprus narrowly avoided FATF greylisting in 2021 due to weak AML enforcement and has a history of financial scandals.

Could Cyprus face EU penalties for its financial practices?
Yes, the EU may impose sanctions or restrict banking privileges if Cyprus continues to enable unregulated gambling.

What happened during Cyprus' 2013 financial crisis?
Cyprus suffered a banking crisis due to its ties to Russian money laundering, leading to an EU bailout and partial reforms.

Why do offshore gambling operators use Cyprus as a hub?
Cyprus provides access to the EU financial system while allowing companies to bypass stricter gambling regulations elsewhere.

What could happen if the EU cracks down on Cyprus?
Cyprus may face penalties, financial isolation, and loss of banking privileges if regulators intervene.

Why does Cyprus avoid strict financial regulations?
The country benefits financially from hosting industries that operate in legal grey areas, despite potential long-term risks.

Is Cyprus' economic growth sustainable?
No, much of it is tied to unstable industries, making it vulnerable to regulatory action and financial instability.