There are lots of people asking whether Hungary is a crypto-friendly country or not. That is a brilliant question, but what is the answer? According to ChatGPT (which only answers based on data from 2022), “Hungary has not been particularly crypto-friendly compared to some other countries. The regulatory environment surrounding cryptocurrencies in Hungary has been somewhat uncertain, with the government taking a cautious approach.” But, is that so? We do not entirely agree, and if the new law suggestion is accepted, then it will be even easier to invest in cryptocurrencies from June 30, 2024.
Many things influence how a crypto-investor and crypto-enthusiast judges a country. The first thing many people think about is crypto taxation. How much do you need to pay in taxes if you invest in crypto in Hungary and what is the tax percentage? Is it complicated?
There are countries in the world where the crypto taxation level is 0%, and Portugal is one of the countries often referred to as a heaven for crypto investors for this reason. What about Hungary? Since 2022, things have gotten much easier also in Hungary. Before that, it was normal to pay a tax of around 30%, but right now you pay a 15% tax on the profit you make. That is much better than many other countries, but not as good as that of Portugal, Germany, and some other countries.
But, luckily, it is easy to report crypto gains in Hungary. In general, all you need is to report how much you have invested (based on bank account statements), and then you need to report the gains you withdraw. What does that mean? You don’t need to do detailed reporting on all transactions you do, but it is normally enough to report on input and output, and then pay taxes based on your gains.
Does this make Hungary sound like a crypto-friendly country to you? It is up to you to decide!
A new law that will make it easier for banks, investment funds, and asset managers to provide cryptocurrency-market services.
The SEC (Security and Exchange Commission) approved the Bitcoin SPOT ETFs in January 2024. As a result, those in control of investment funds and asset managers can easily include Bitcoin as a part of their funds, making Bitcoin way easier to buy and include for investors in the USA. If everything goes as planned, then the upcoming law that is suggested in Hungary will have approximately the same effect in Hungary.
It will make it easier for banks and investment funds to include crypto assets in their portfolios and funds, and thus, give customers the option of further diversification.
Since the government in Hungary is quite one-sided, all suggestions made by the current government are always approved, since they have a majority in the parliament. And it isn’t exactly a tradition to vote against your own party in Hungary (even if you don’t agree), so it is quite obvious that this new law will be approved.
This is a good thing for those who want to include Bitcoin and other crypto assets in their portfolios without having to open a new account on a cryptocurrency exchange.
