Crypto investors in Hungary might be getting a big tax benefit very soon, as lawmakers seek to form the central European country more competitive in the wake of the coronavirus outbreak.
Within an official video that appeared on Facebook Tuesday, minister of finance Mihály Varga outlined his government’s stimulus program through 2022. As a part of the post-Covid-19 relief efforts, lawmakers are considering reducing taxes on crypto trading to 15% of income, down from the present rate of 30.5%. Such a move would make Hungary a much more competitive jurisdiction with reference to cryptocurrency-related capital gains taxes.
Cryptocurrency regulations are underdeveloped in Hungary, via the purchasing and selling of digital assets is assessed as “other income” from the reference of taxation.
After surging during the heights of the 2017 market, cryptocurrency trading in Hungary remains fairly modest compared with other countries. However, a transparent uptick has been observed since the beginning of this year.
Hungary has been involved in preliminary discussions surrounding a CBDC [Central Bank Digital Currency]. Earlier in August last year, a representative from the Hungarian central bank joined a roundtable discussion with colleagues from the Swiss commercial bank, Bank of England along with others in discussing the potential rollout of CBDCs within the mere future.
Hungary, like other nations, was hit hard by the coronavirus outbreak. At one point, the central European Nation had the worst Covid-19 death rate within the world. Nevertheless, the country has been slowly unwinding strict shelter-in-place orders since March as daily new cases continue to fall.