Answer ... In light of the favourable tax rules and funding programmes available for small and medium-sized enterprises, Hungary is a perfect destination for fintech companies and investors. The presence of talented and highly educated professionals also facilitates innovation.
However, the regulatory framework has not yet caught up with such innovation. Thus far, the National Bank of Hungary (NBH) has drawn attention to the possible risks arising from new trends and has adopted a rather cautious approach towards fintech solutions. The NBH prioritises the stability of the financial sector and consumer protection. Therefore, in the case of all fintech-related solutions, the assessment of whether they qualify as regulated activities is particularly important.
Co-author: Dr. Dániel Szabó