Hungary plans to allow banks, investment funds and asset managers to provide services to private and corporate clients in the digital asset market.

The Hungarian government has begun agreeing on a bill that will allow banks, investment funds and asset managers to carry out transactions in bitcoins and ether, as well as offer clients other services related to servicing the crypto sector. In accordance with the government's plans, the Central Bank of Hungary, Magyar Nemzeti Bank (MNB), will be entrusted with regulating and supervising the activities of crypto services.

“The integration of cryptocurrencies into mainstream financial services opens up new opportunities for investment, transaction efficiency and financial inclusion, potentially transforming the economic landscape in Hungary and beyond,” comments on the bill say.

The provisions of the future law on cryptocurrency regulation and provision of services take into account the specifics of the Hungarian digital asset market and are fully compliant with the requirements of European Union legislation, including the application of the Markets in Crypto-Assets (MiCA) Regulation and the improvement of measures to combat money laundering and the financing of terrorism. The new law is expected to come into force in the first half of 2024.

Earlier, the Central Bank of Hungary stated that the state stablecoin would not have a significant impact on the country’s financial system, so the regulator does not plan to rush into its launch.