Back in 2014, the Hungarian Central Bank urged citizens not to invest in bitcoin and other cryptocurrencies. According to the regulator, investing in digital assets is an extremely risky venture.
BTC and other virtual coins show a wide range of price fluctuations, and the investor risks losing all his funds if turbulence leads to a market collapse, the Central Bank emphasized.
However, several years passed, and the Hungarian authorities began to gradually change their attitude towards the cryptocurrency industry.
The Hungarian government has decided to reduce the tax rate on income derived from transactions with digital assets. If earlier the rate reached 30.5%, now it will be reduced to 15%.
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The new taxation system for crypto traders will start operating in 2022. The Central Bank, together with the Cabinet of Ministers, decided to reduce the pressure on cryptocurrency owners and stimulate them to get out of the shadows.
According to Finance Minister Mihai Varga, the mitigation of tax pressure will increase budget revenues.
The finance department has calculated that the Hungarian treasury will receive hundreds of millions of dollars, as the volume of investments of Hungarian companies and citizens in bitcoin will continue to grow in the coming years.