Canada    FinTech Guide    Chapter 6    Hungary


6. Virtual Currency - Bitcoin
Hungary  Hungary

MNB has warned investors in relation to the risks associated with the purchase and use of bitcoins.



Legal Affairs


Since bitcoin does not qualify as money, currency or financial instrument, the regulatory framework does not apply to it currently. However, MNB (and the European Union) is constantly investigating the bitcoin market, proposes legislative changes and issues warnings regarding risks associated with the use of bitcoin.



Economic Conditions


Virtual currencies such as bitcoin are available in Hungary and a number of important bitcoin exchange companies (such as Coinbase or Circle) are also available in the country. Further, an association called the Hungarian Bitcoin Association operates to support this business area. According to statistics released in 2016, the amount of bitcoin used in the Hungarian market is equivalent to approx. EUR 27 million, and for the time being, there are approx. one thousand platforms in the country where bitcoin is accepted.

One of the most important Hungarian based bitcoin related companies is Coinpay Zrt., a startup which develops a payment system that accepts bitcoin, but there are also Hungarian based bitcoin wallet companies (such as Shinrai which develops the bitcoin wallet MrCoin) on the market.



Economic Conditions


For the time being, bitcoin is not commonly used on the Hungarian market, but it is developing and it is mostly startups that are involved in this area.



Contributing Authors

Lakatos, Köves & Partners

Richard Lock
Budapest, Hungary

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018