Hungary is all set to reduce the cryptocurrency tax by 50% for the owners of crypto. Earlier this week the Hungarian Finance Minister announced that they will be reducing the tax for owners of digital assets. This is encouraging news for the existing investors and traders of digital currencies and it can also be an incentive for novice parties to consider trading and investing in crypto.
Cryptocurrencies are volatile and the market trends can sometimes be unstable. However, the significance and utility of digital assets are increasing day by day. While some see cryptocurrencies to be short-lived, others anticipate that they can be the future of currency.
Therefore, with the increasing growth of Bitcoin and several other altcoins, now might be a suitable time to invest in cryptocurrencies by using popular exchanges such as SwissBorg or Kraken.
Interested parties can also consider crypto trading and use ByBit, which is one of the most well-known crypto exchanges in the market.
Why Hungary Took the Initiative to Reduce Crypto Tax?
Mihály Varga, the Minister of Finance, announced on Tuesday that the tax on digital assets will be reduced. As per the announcement, the crypto tax is set to be reduced to 15% in 2022. The decrease in tax planned by Hungary is approximately half of the current rate, which is 30.5%.
According to reports, Hungary plans on taking this initiative as it is anticipated to attract billions of Hungarian forints to the budget of the country. Another initiative taken by the country is to reduce the social contribution tax from 17.5% to 15%. This has been planned by Hungary in an attempt to get the economy back on track after being adversely affected by the COVID-19 pandemic.
Great News for all Cryptocurrency Owners
Hungary’s decision to reduce tax for cryptocurrency owners is encouraging for both existing and potential crypto investors. As per the statement of a pioneer of crypto space, Hungary is molding into “the Wyoming of Europe,” which is the most crypto-friendly state in the U.S.A.
Hungary is not the only EU country that has introduced tax incentives as Portugal also does not require the investors and holders of crypto to pay any taxes until they decide to trade on a professional level.
Such incentives can be seen as a way to determine the growing significance of cryptocurrencies, which can indicate a suitable time to invest in digital assets.
Therefore, people who plan on buying Bitcoin or other altcoins can use SwissBorg or Kraken, while potential crypto traders can use exchanges such as ByBit. People who do not have enough time on their hands can opt for copy-trading by using PrimeXBT Covesting.