In Hungary, a wide range of financial activities are subject to licensing requirements, including the following:

Banking services

• Taking deposits and receiving other repayable funds from the public
• Credit and loan operations
• Financial leasing and money transmission services
• Issuance of electronic money and paper-based cash-substitute payment instruments
• Providing surety facilities and guarantees, as well as other forms of banker’s obligations
• Commercial activities in foreign currency, foreign exchange
• Financial intermediation services
• Safe custody services
• Credit reference and credit consultancy services
• Currency exchange activities
• Operation of payment systems and money processing activities
• Financial brokering on the interbank market

Payment services

• Services enabling cash to be placed on a payment account and cash withdrawals from a payment account, as well as all the operations required for operating a payment account
• Execution of payment transactions between payment accounts
• Issuing and accepting, cash-substitute payment instruments and the acquiring of payment transactions
• Payment initiation and account information services

Investment service activities

• Receiving and transmitting client orders
• execution of orders on behalf of clients
• Dealing on own account
• Portfolio management and investment advice
• Placement of financial instruments, including a commitment for the purchase of assets
• Granting credits and loans to investors

Insurance activities and reinsurance activities pursued by insurance companies and insurance mediation, reinsurance mediation and ancillary insurance mediation activities also require license in Hungary.

Securities trading, including the issue of securities, the offering of securities and their admission to trading on a regulated market in the territory of Hungary, is subject to authorization.

The foundation, operation and transformation of financial institutions (credit institutions, financial enterprises, insurance companies, investment firms, etc.) in the territory of Hungary, as well as their acquisition, portfolio transfer and intermediary activity, also require authorization.

In addition, any other financial activity carried out in the territory of Hungary on a business-like basis (i.e., gainful, for-profit activity; performed on a regular basis; involving the conclusion of deals that have not been individually negotiated) is subject to authorization.

The regulatory status of crypto-assets and crypto-currencies

Act VII of 2024 on the markets in crypto assets entered into force on 30 June 2024. The Act is based on the Markets in Crypto-Assets Regulation (MiCA), and the classification of crypto-assets is aligned with the EU regulation. It distinguishes between three different types of crypto-assets:

• E-money tokens as crypto-assets that seek to maintain their value stability by reference to a legal tender
• Asset-based tokens as crypto-assets that are not e-tokens and that maintain their stable value by reference to another value, right or combination of these — including one or more official currencies of a country
• Crypto-assets other than e-tokens and asset-based tokens, which are subject to a simplified regulation

Act VII of 2024 regulates the issuance, public offering and admission to trading of crypto-assets in Hungary, as well as supervision relating to these crypto-assets which will fall under the remit of the MNB. The Act also contains provisions on the issuers of crypto-assets and crypto-asset service providers, including the authorization process.