Hungary to Allow Banks to Offer Crypto-Related Services

Hungary plans to allow banks, investment funds and asset managers to provide private and corporate clients with services in the digital asset market, Bloomberglaw reports.

Currently, the Hungarian government has begun to coordinate the relevant draft law. It will allow financial institutions not only to conduct transactions in bitcoin and ether, but also to offer clients other services related to the crypto sector.

According to the Hungarian government's plans, the country's central bank, Magyar Nemzeti Bank, will be responsible for regulating and supervising the activities of crypto services.

"The integration of cryptocurrencies into mainstream financial services opens up new opportunities for investment, transaction efficiency and financial inclusion, potentially transforming the economic landscape in Hungary and beyond," the comments to the draft law read.

The provisions of the future law on cryptocurrency regulation and services take into account the specifics of the Hungarian digital asset market and are fully compliant with the requirements of EU legislation, including the application of the Markets in Crypto Assets Regulation (MiCA) and the improvement of anti-money laundering and counter-terrorist financing measures.

The new law will come into force in the first half of 2024. 

Earlier, the Central Bank of Hungary stated that the state-owned stablecoin will not affect the country's financial system, so the regulator does not plan to rush its launch.