Hungary has been somewhat open to ICOs and crypto but has taken a critical look at them and may use the EU regulations to roll out further regulation, given the comments of:
“The so-called cryptocurrency issuers typically operate via the web with extensive marketing tools and the promise of high yields, targeting uninformed users into the system (scheme)”
Hungary is located in Europe (EU): The countries of the European Union hold a patchwork of individual attitudes towards cryptocurrency regulation, but all of them also fall under the jurisdiction of the EU Commission.
Cryptocurrency trading in Hungary
Previously the The National Bank of Hungary (MNB) has criticized crypto currency, though not regulated it. The warning essentially read:
“The so-called cryptocurrency issuers typically operate via the web with extensive marketing tools and the promise of high yields, targeting uninformed users into the system (scheme).”
It has brought charges against fraudulent cryptocurrencies.
In January the EU came out with new directives on cryptocurrencies, asserting that “gaps still exist in the oversight of the many financial means used by terrorists, from cash and trade in cultural artefacts to virtual currencies and anonymous pre-paid cards. This proposal seeks to address those gaps while avoiding unnecessary obstacles to the functioning of payments and financial markets for ordinary, law-abiding citizens and businesses, so balancing the need to increase security with the need to protect fundamental rights, including data protection, and economic freedoms.”
Mostly focused on ending anonymity among the crypto community, and preventing nefarious individuals from buying, funding, or selling orgs or resources. It does include the sharing of company and individual information with public entities at times, and affects exchanges and wallets.
Regulation of ICOs in Hungary
Hungary doesn’t strongly regulate ICOs, but has pursued legal action against fraudulent ones The upcoming EU regulations also will likely result in more regulations around KYC and AML practices.
Cryptocurrency markets in Hungary
Hungary has a decent sized crypto community and a few exchanges but the government has been cracking down on various ICOs, though the ones they’ve done so with have been fraudulent.
IBC’s planning and strategy team can provide expert advice on ICOs in different jurisdictions. If you’re thinking of holding an ICO in COUNTRY and you’d like more information, contact us here.
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