Name
Global FinTech Guide
Country Name
Hungary
SectionTitle
DLT and cryptocurrencies
Body
FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.

Introduction

Attitude of the country towards financial services using crypto currencies

The Hungarian National Bank (MNB) as the local regulator of the financial market maintains a hostile stance against services using crypto currencies and has issued several warnings to existing and potential investors regarding the volatility of the related markets.

Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above

Assuming that crypto currencies do not qualify as money or financial instruments (as defined in the relevant statutory provisions), these services fall outside the scope of financial regulations and the supervisory scope of the MNB.

Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

MNB (and the European Union) is constantly investigating the crypto currency market, proposing legislative changes, and issuing warnings regarding risks associated with the use of crypto currency and the related investments.

Economic conditions

Market size for financial services using crypto currencies and biggest companies in this business area

This is unknown information, since almost all players of these markets are foreign, without a license. There is no official information regarding revenues, transactions, and users in this field.

Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

N/A

Authors

Disclaimer

© 2022, Lakatos, Köves and Partners Law Firm. All rights reserved by Lakatos, Köves and Partners Law Firm as author and the owner of the copyright in this chapter. Lakatos, Köves and Partners Law Firm has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this guide.

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.

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