Hungary wants to establish strict regulations on cryptocurrencies so that local banks can directly sell cryptocurrencies. The EU regulation on cryptocurrency asset markets, known as MiCA, is set to take effect in 2024, contributes to the country’s transition to cryptocurrencies.
Earlier this month, Hungary’s Ministry of National Economy (NGM) published a draft law on the cryptocurrency market. A local report said the bill would regulate the future marketability of digital investment instruments.
According to the NGM proposal, two main themes were highlighted. First, traditional financial institutions should start using cryptocurrency services. For this reason, national banks could directly sell cryptocurrencies to their customers.
Second, crypto assets would be monitored by the Hungarian National Bank (MNB). However, the MNB is not required to regulate the Bitcoin market, instead overseeing the domestic token trade.
Hungary’s CBDC plans
Hungary last year noted that the introduction of a universally accessible central bank digital currency(CBDC) is essential. Hungary “would like to remain at the forefront of CBDC research,” said Anikó Szombati, MNB’s director of digitization.
“When considering a CBDC, you must first determine your motivation based on a serious market failure or a strong political objective.”
In addition, she stressed that the nation is studying the possibility of issuing a CBDC soon. Szombati added that since 13% of Hungarian adults do not have a bank account, encouraging more people to use the financial system could be one incentive.
In June 2023. MNB has partnered with banking services company Perfinal to launch the EU’s first CBDC pilot project.
