Investors in cryptocurrencies in Hungary may face severe tax cuts once lawmakers seek to make this central European country more competitive in the wake of the COVID-19 pandemic.
In a video posted to Facebook on Tuesday, Finance Minister Mihai Varga outlined the government’s stimulus program through 2022. As part of relief work in the shadow of COVID-19, lawmakers are considering lowering the tax on cryptocurrency circulation to 15% on income, up from the current one. interest rates. 30.5%. Such a move would make Hungary a more competitive jurisdiction when it comes to capital gains taxes based on cryptocurrencies.
Cryptocurrency regulation in Hungary remains underdeveloped, although the purchase and sale of digital assets is classified as “other income” in terms of taxes.
Having ranked first in the beef market in 2017, cryptocurrency trading in Hungary is still very modest compared to other countries. However, there has been a clear increase since early 2021.
Hungary participated in initial discussions about the central bank’s digital currency, or CBDC. In August 2020, a representative of the Hungarian National Bank participated in a roundtable discussion with colleagues from the Swiss National Bank, the Bank of England and others to discuss potential future central bank developments of the central bank.
Hungary, like other countries, has been hard hit by the COVID-19 pandemic. At one point, the Central European country had the highest death rate from COVID-19 in the world. But since March, the country has gradually eliminated strict asylum orders as new cases continue to drop daily.