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Ministry for National Economy to Propose a Law for Cryptocurrency Regulation

Hungary Today 2024.03.05.

Countries worldwide are grappling with the challenge of monitoring and regulating cryptocurrencies, with differing approaches being taken. In Hungary, the responsibility would lie with the Hungarian National Bank (MNB), reports Világgazdaság.

While some nations have banned all cryptocurrencies, others employ various regulatory bodies to oversee the sector. It is clear that there is no established universal precedent. The recent release for public debate of a draft law on the crypto asset market by the Ministry for National Economy has sparked interest.

The proposed law would regulate the future tradability of digital investment instruments.

The ministry’s proposal has two significant points: firstly, it would allow domestic banks to offer cryptocurrencies like Bitcoin or Ethereum directly to customers. This move could have had a more pronounced impact on domestic investment a year ago given the recent launch Bitcoin-ETFs, which enables investors to access tokens through banks without direct exposure.

Another crucial aspect is the supervision of newly available crypto assets by the Hungarian National Bank.

However, it is important to note that the MNB would not regulate the bitcoin market, but only oversee the domestic trading of tokens.

As global acceptance of crypto-assets grows, various regulatory frameworks have emerged:

  • USA: Oversight by SEC, CFTC, and Chicago Mercantile Exchange. Public trading allowed through major banks, with profits taxed up to 37%.
  • China: Comprehensive ban on trading and holding cryptocurrencies.
  • Canada: Allows bitcoin ETFs and largely unrestricted trading of crypto assets, with brokers required to register with two exchange regulators.
  • India: Proposed ban on cryptocurrencies not yet in effect, currently imposes a 30% tax on crypto investments.
  • EU: Generally legal, with regulation handled by Member States. Hungary levies a 15% tax on crypto gains.

Notably, central banks in major economies worldwide do not supervise the crypto market. However, as regulatory practices in this sector evolve, a tailored solution may prove necessary.

Hungarians Are Wary of Cryptocurrencies
Hungarians Are Wary of Cryptocurrencies

Those who shun cryptocurrencies say they are not secure enough and have privacy concerns about them, a recent poll shows.Continue reading

Via: Világgazdaság; Featured Image: Pixabay

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