Is there a policy on the use of cryptography and encryption?

Cryptography policy is a separate measure under Article 21

Yes, this is one of the ten measures mentioned in Article 21(2) NIS2: under (e) it states "policies and procedures concerning the use of cryptography and, where appropriate, encryption". The question therefore specifically addresses whether there is a document that sets out when and how encryption is applied — not whether data is encrypted somewhere at some point. A question about this in a questionnaire usually asks for the policy document itself, not a technical implementation.

What typically counts as evidence is a cryptography policy or a section on it in the information security policy: which data categories are encrypted (data at rest, data in transit), which algorithms or standards apply as a minimum, and who decides on exceptions. If that document is missing, then "no" is the honest answer — a loose technical measure such as TLS on the website is not a policy. This topic is often linked to access control and management of business assets, because encryption requirements often appear there, and to the periodic testing of security measures, because an auditor typically checks whether the policy is actually implemented.

Where this is located: Article 21(2) of NIS2

Article 21(2) NIS2 lists ten categories of measures that entities must "at a minimum" take; under (e) is cryptography and encryption policy with "where appropriate" — the Directive therefore does not prescribe a specific algorithm or specific key length, but does require that an entity falling under NIS2 has a considered policy on this. To determine whether this applies to the company itself, it is first relevant whether it falls within the scope of the NIS2 Directive or its national transposition: if it falls outside, a customer can still contractually impose this question, but then there is no legal obligation that determines the answer.