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Hungarian authorities confiscate $1 million in crypto assets amid tax evasion crackdown

TL;DR

  • Hungary’s National Tax and Customs Administration (NAV) seized $1 million in cryptocurrency assets from a criminal organization suspected of evading approximately $8.29 million in taxes.
  • The group, involved in the consumer electronics trade, allegedly imported tax-free goods from the EU and sold them through shell companies to avoid value-added tax (VAT).
  • While Hungary’s central bank has previously proposed a blanket ban on crypto trading and mining, the country recently launched a Central Bank Digital Currency (CBDC) project, highlighting its complex stance on digital assets.

Hungary’s National Tax and Customs Administration (NAV) has confiscated cryptocurrency assets valued at $1 million. The seizure is part of an extensive investigation into a criminal organization suspected of evading taxes amounting to three billion Hungarian forints, approximately $8.29 million. 

The operation involved simultaneous raids on 28 locations, resulting in the arrest of three individuals connected to the group.

The criminal organization, primarily involved in the consumer electronics trade, allegedly exploited loopholes in the European Union’s tax system. They imported electronic devices such as smartphones, tablets, and solar panels tax-free from various EU countries. 

Moreover, these products were then sold through a network of shell companies, effectively dodging value-added tax (VAT) obligations. The NAV revealed that the group frequently changed these front companies, allowing them to sell these electronic devices to wholesalers and resellers at competitive prices. Consequently, the organization evaded more than HUF 3 billion in VAT. 

The NAV’s operation was not limited to the confiscation of cryptocurrency. Additionally, assets such as solar panels, associated inverters, cars, cash, real estate, and bank accounts worth more than half a billion forints were seized. The authorities have transferred the confiscated cryptocurrencies to a specially designed wallet under NAV’s control.

Hungary’s complex relationship with cryptocurrency

Hungary has had a somewhat ambivalent stance towards cryptocurrency. György Matolcsy, the governor of Hungary’s central bank, Magyar Nemzeti Bank (MNB), had previously proposed that the European Union should consider a blanket ban on crypto trading and mining. 

According to the proposal made by Matolcsy, individuals and companies based in the EU could maintain ownership of their crypto assets outside the EU while regulators would monitor their holdings.

However, the country has shown a different attitude regarding Central Bank Digital Currencies (CBDCs). Significantly, Hungary’s central bank launched its CBDC project in collaboration with fintech company Perfinal just last month.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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