The regulation was challenged by the Greek Cypriot authorities when the attorney-general brought criminal charges against Neophytos Constantinou for flying out of Tymbou (Ercan) airport. However, the Nicosia District Court found in favour of the defendant, citing Regulation 866/04 in its ruling on 20 Aug. 2004, thereby preventing the authorities from levying any penalty against him.

Two appeals by the attorney-general in Sept. 2004 were turned down by the Republic of Cyprus’s Supreme Court for the same reason.
https://www.t-vine.com/e10000-fine-for-athletes-using-ercan-as-greek-cypriot-authorities-step-up-action-against-illegal-airport/

но если вы собираетесь подавать на кипрское гражданство - это может стать препятствием