Hungarian Ministry of Economy proposes to allow banks to work with cryptocurrency

The initiative is part of efforts to implement the pan-European crypto regulation MiCA

04.03.2024 - 09:38

3 min

What’s new? Hungary’s Ministry of Economy has introduced a bill that would allow banks, investment funds, and asset management companies to offer cryptocurrency-related services. The Central Bank is proposed to be the main regulator of the crypto sector. If approved, the bill will come into force on June 30 this year.

Material by Bloomberg

What else is known? The bill aims to create a regulatory framework for digital assets and integrate them into the financial system without compromising security and compliance standards. It is part of the authorities’ efforts to implement EU-wide acts, including the Markets in Crypto Assets (MiCA) Act and measures to combat money laundering and terrorist financing.

The integration of cryptocurrencies into mainstream financial services involves changes in investment patterns, transaction efficiency, and greater accessibility of financial services, which could have a significant impact on the country’s economy.

That said, in early 2022, the head of Hungary’s Central Bank called for a ban on cryptocurrency mining and trading in the EU, as such assets could be used in illegal activities.

At the moment, many US crypto companies have started to develop their business more actively in the EU due to the introduction of a clear regulatory framework in the bloc. Among them are crypto exchanges Coinbase and Kraken, as well as payment protocol developer Ripple. All of them have previously faced lawsuits from the US securities regulator for offering unregistered investment contracts.

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The European Securities and Markets Authority (ESMA) is also still consulting on the classification of crypto assets under MiCA. In addition, at the end of January, EU authorities agreed to tighten controls on crypto transfers over 1000 EUR.

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