Hungary confiscates $1 million for tax on crypto

Hungary Confiscates $1 Million for Tax on Crypto

Hungarian authorities have identified the illegal use of cryptocurrencies in their country. Specifically, they have noticed its use for tax evasion purposes. This is quite illegal as the country does set a tax on crypto. So, with their recent moves, they hampered people using cryptocurrencies for such purposes. Reports say that the National Tax and Customs Authority of Hungary has seized the equivalent of $1 million in cryptocurrencies. The individuals involved supposedly evaded 3 billion in Hungarian forints.

The tax inspector’s criminal department raided numerous locations in a day, 28 in fact. They arrested 3 of the members of the group. They had been quietly following the group for a long time and had been waiting to carry out this operation. Their operation is involved with consumer electronics, meaning products like smartphones. What they managed to do is purchase such products from the EU tax-free for the first step. They would then go on to sell them through a front to avoid paying taxes, which generated considerable profits.

For the crypto scam recovery, the tax inspector then transferred these funds to a special crypto wallet just for these assets.

There have been multiple such cases recently in Hungary, with illegal use of crypto. Recently, authorities investigated Hungarian politician Thomas Borka-Saxon, part of the Democratic Coalition. They found that he had used public funds in the form of government electricity in mining Bitcoin. Authorities then had to seize the crypto mining rig to halt the operation. This put his party in a particularly bad light and caused a public outcry against him and the party in general. Considering this kind of activity, some are looking at extreme measures to curb illegal activity. The leader of the central bank in Hungary has stated his support for a ban on crypto in the EU. However, there is also the possibility of the creation of a digital currency for the central bank in the future, helping with the tax on crypto.

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