Cryptocurrency investors in Hungary could very soon get a significant tax break as lawmakers try to make the Central European country more competitive after the Covid-19 pandemic.
In a video that appeared on Facebook on Tuesday, Finance Minister Mihály Varga described his government’s economic stimulus plan until 2022. As part of the relief measures after Covid-19, the legislature is considering reducing taxes on trading in cryptocurrencies from the current 30.5% to 15% of sales.. Such a move would make Hungary a much more competitive jurisdiction in terms of cryptocurrency-based capital gains taxes.
The rules for cryptocurrencies in Hungary are underdeveloped, although the buying and selling of digital assets is classified as “other income” from a tax point of view.
After rising during the bull market highs of 2017, Trading cryptocurrencies in Hungary is still quite modest compared to other countries. However, a clear upswing has been observed since the beginning of 2021.
Hungary was involved in preliminary talks about the digital currency of a central bank (CBDC). In August 2020, a representative from the Hungarian National Bank took part in a panel discussion with colleagues from the Swiss National Bank, the Bank of England and others to discuss the possible use of CBDCs in the future.
Like other nations, Hungary was badly hit by the Covid-19 pandemic. At one point, the Central European nation had the worst Covid-19 death rate in the world. However, since March the country has been slowly reversing strict sanctuary restrictions as the number of new daily cases continues to decline.