Is cryptocurrency legal in Hungary?

Hungary and Cryptocurrency

Hungary Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Currently, there are no laws that specifically regulate the use of cryptocurrency in Hungary, nor is any cryptocurrency recognized as legal tender. [1] Further, cryptocurrencies are not considered a security in Hungary. [2] In a statement released by the country’s Finance Ministry, they restated that there is currently no regulatory framework for cryptocurrency in Hungary. Still, efforts are being made to create a regulatory system and define the countries position on cryptocurrency. [3] This effort comes after a Hungarian cryptocurrency called Korona was launched in Budapest but was headquartered and incorporated in Switzerland because Switzerland offered a more stable and efficient cryptocurrency environment. [4]

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.  The globe below provides links to country-by-country summaries:

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Is cryptocurrency legal in Hungary?

Do you have questions about cryptocurrency, digital currencies, or blockchain technology?


Freeman Law can help with digital currencies, tax planning, and tax compliance.  Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[1] Cryptocurrency Regulations in Hungary, https://gurcanpartners.com/en/cryptocurrency-regulations-in-hungary/#:~:text=At%20present%2C%20there%20is%20no,central%20bank%20or%20issuing%20company.

[2] Id.

[3] https://thebitcoinmag.com/crypto-regulation-clarity-emerging-in-eastern-europe/2658/

[4] Korona: Hungary’s Very Own Cryptocurrency, https://www.newsbtc.com/news/korona-hungarys-cryptocurrency/

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