The Hungarian government is considering preliminary legislation to allow banks, investment funds, and asset managers to offer Bitcoin and other cryptocurrency services, as reported by Bloomberg Law. This initiative aims to align Hungary’s regulatory framework with EU standards.
The proposed regulations, still in the drafting phase, assign oversight of crypto services to the Hungarian Central Bank (MNB). If enacted, these regulations would formalize the crypto market in Hungary, lacking specific laws on cryptocurrency usage thus far. The MNB is also exploring the potential for a central bank digital currency (CBDC), although it’s not deemed an immediate priority.
This proposal arises amidst tensions between the government and the MNB. Central Bank Governor Gyorgy Matolcsy accuses the government, led by Prime Minister Viktor Orban, of undermining the central bank’s independence with proposed legal changes. Conversely, the government argues its proposal aims to enhance transparency and responsible financial management without interfering with monetary policy.
