The Hungarian government has introduced draft legislation that would permit banks, investment funds, and asset managers to provide Bitcoin and other cryptocurrency services. This move aims to align Hungary’s regulatory framework with relevant European Union legislation and formalize the crypto market in the country. The proposed regulation designates the Hungarian Central Bank, Magyar Nemzeti Bank (MNB), to oversee crypto services nationwide, with plans to enact it by June 30. Despite the initiative, no digital currency is currently recognized as legal tender in Hungary. Meanwhile, tensions have escalated between the Hungarian government and the MNB, with Central Bank Governor Gyorgy Matolcsy accusing the government of attempting to undermine the central bank’s independence. The government, led by Prime Minister Viktor Orban, defends the proposal as a measure to enhance transparency and responsible financial management, without encroaching on monetary policy decisions. This development underscores Hungary’s efforts to navigate the regulatory landscape of cryptocurrency while addressing internal governance issues within the financial sector.

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