KNP LAW provides legal advice about transactions conducted through digital assets, including crypto assets. Regulations regarding crypto-asset transactions and other digital assets will be increasingly scrutinized throughout the European Union, impacting the Hungarian crypto-asset market as well. With increasing regulation on the horizon, our team is available to ensure that our clients follow current and upcoming legislation and changes. This includes transactions conducted on distributed ledger technology (“DLT”).
We are keeping our clients apprised of current and future regulations impacting digital assets. This area of law is still in its infancy, and as such, our job is to advise, monitor, and update every piece of legislation that could impact our client’s current or future work.
In this constantly evolving landscape, you can rely on our team to ensure your organization complies, will remain in compliance and has all the legal tools necessary for success.
More about this service
Blockchain technologies are rapidly developing and advancing, and their use expands far beyond digital assets. Blockchain technology provides users transparency, reliability, and simplification in many ways. This technology has revolutionized how money is transferred, financial exchanges operate, lending is handled, and even how real estate transactions can be simplified using blockchain technology.
Crypto Asset Transaction Classification
Several crypto asset transactions fall into various categories – but we can break them down into two major ones: transactions requiring a license and transactions that can proceed without needing a permit. Our team regularly advises clients on where their dealings and activities will fall and what license will be required. The Hungarian National Bank (in Hungarian: “MNB”) currently does not have stringent crypto asset regulations. Still, categorization is vital to ensure compliance with not just Hungarian legislation but also EU-level policies.
It all starts with an idea. With increasing regulation in the EU that extends to what companies dealing with digital assets will have to contain in their whitepaper, we are actively monitoring these developments and assist clients with making sure their whitepaper is not only compliant but will assist them on their journey to fundraise and grow their organizations.
Is it security or a commodity? A security token and a commodity token differ in how their value is derived. The categorization of a token can be the crux of an initial coin offering (“ICO”). Our goal is to work with our clients from well before their ICO to ensure their token has the correct legal categorization.
Taxation of Digital Assets & Corporate Structure
Hungary already has legislation impacting tax liabilities of individuals arising from crypto and other digital asset-related income. To ensure our clients have the best corporate structure to operate in this space, we work with colleagues and partner offices in various parts of the world to create a structure that accurately reflects our client’s goals. A multi-jurisdictional approach can be the difference maker in a constantly evolving space.
Client First Approach
We provide solutions for current and anticipated problems through mutual collaboration between our team and yours. We solve and alleviate the legal obstacle.
Our team consists of attorneys trained in several countries, including the United States, Germany, and France.
We are a firm built on cooperation and collaboration not only with our clients – but internally within our firm.
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