When thinking about doing business in Hungary or starting a trading career it is important to know who the regulators are and how the sector is regulated overall. In this article we are going to cover who are the main regulatory authorities and if they are going to regulate cryptos.
There are two main regulatory bodies in Hungary that oversee the financial sector: the National Bank of Hungary or NBH and the Central Bank of Hungary or CBH. These regulators are regulating all the financial institutions in the country making it safe for traders and investors to do their activities.
Whether you are trying to start trading or learn about it you will need a reliable source of Forex brokers that provide trading platforms and connect traders with financial institutions. Because of this, you must find a proper broker that is regulated and offers the exact services you need including fees, commissions, and regulatory countries. There is a website just doing that called investfox.com and it provides comprehensive research and review of brokers worldwide. Because of this, investfox is a reliable source of information when searching for a trustworthy broker.
CBH regulates the stock and securities market. The central bank also oversees companies that are operating in the securities market, and has the power to take action and investigate the market participants that act fraudulently. NBH on the other hand is in charge of Forex transactions, monitors the stability of the financial system, and can take action to ensure its stability.
There are no clear and defined regulations yet provided by the aforementioned regulators. Despite this, the capital gain tax applies to cryptos too with 15%. Since the national bank of Hungary was the one issuing the warning statements about the risks associated with cryptocurrencies, it was not recognizing them as legal tender. Because of this, Hungary, like many other countries all over the world, is not ready to recognize cryptos as digital cash and is not thinking about regulating them. But since the NBH was the one addressing the cryptos it will be logical if it will be the authority that will regulate cryptos in the future. The Hungarian government also addressed the same potential issues about cryptos and promised to regulate crypto markets in the future since a vast number of Hungarian residents can register with exchanges and brokers similar to FP Markets that are regulated, yet in other countries and often not in EU. This way, the investors are risking losing their access to investor protection programmes. . Whoever takes the responsibility of regulating digital currencies it may have a tremendous impact on cryptos in Hungary. The good news is that Hungary is not a big player in global financial markets in the crypto department making it less probable they can affect the digital currencies in fundamental ways. The main regulatory bodies that are worth checking are US authorities, especially the SEC or Securities and Exchange Commissions of the US. They are trying to recognize most cryptos as securities that contain huge risks for the future of most cryptos that are especially using the proof of stake algorithms.
Two authorities in Hungary are in charge of stock and Forex market regulations: the National Bank of Hungary and the central bank of Hungary. CBH regulates securities markets including stocks and NBH oversights Forex transactions. Both of these authorities may investigate and take action against scams and fraudulent actors in these markets. Crypto regulations have yet to be defined as none of those authorities have issued any laws yet. Despite no apparent regulations, crypto revenues are also charged with the capital gain tax of 15%. Since Hungarian authorities can not affect cryptos greatly they contain less of a risk for cryptocurrency markets than the USA’s SEC. The best bet for cryptos is that the SEC will not be the authority who will be in charge of cryptos. Since there are not many arguments against cryptos being securities there is a higher chance that SEC won’t be the authority regulating crypto in the US thereby affecting the global crypto market.