Hungary has enacted a new law imposing serious prison sentences on individuals using or operating unauthorized crypto exchanges. These changes came into effect on July 1, 2025, escalating the risks for crypto traders and service providers.
The Criminal Code updates introduce penalties ranging from two to eight years in prison, depending on the scale of illicit activity. These laws have caused alarm among crypto users and firms within Hungary.
How harsh are Hungary's new crypto laws?
The updated Criminal Code stipulates that unauthorized crypto trading involving values between 5 million and 50 million forints can result in up to two years of imprisonment. For crimes involving particularly large values, up to 500 million forints, penalties increase to three or five years.
Providers operating unauthorized crypto-asset exchange services face even stiffer punishments, with sentences up to eight years for offenses exceeding 500 million forints.
Did you know?
Did you know the first criminal penalties regarding crypto trading in Hungary only took effect from July 1, 2025, marking a significant shift in regulatory approach?
What penalties do crypto traders and providers face?
Individuals who use unauthorized exchanges face up to two years in prison for mid-range trade values, with penalties escalating to five years for higher-value offenses. Crypto service providers face up to three years, rising to eight years for very large unauthorized trading volumes.
The graduated penalty system aims to address both casual and large-scale unauthorized crypto activities.
ALSO READ | Crypto Giant Grayscale Quietly Files for IPO, Eyes Billions in Fresh Funding
Hungary's crypto crackdown confuses companies
The new laws have caused confusion, as Hungary's regulatory body has yet to issue compliance guidelines, leaving crypto companies uncertain about lawful operations. This regulatory vacuum has disrupted services and created legal uncertainty for the industry.
Revolut halts and reinstates crypto services in Hungary
Following the legislation, fintech firm Revolut initially suspended all crypto-related services in Hungary, including trading and withdrawals. However, they recently reinstated crypto withdrawals while their EU arm pursues a crypto license to comply with evolving regulations.
Hungary’s strict crackdown signals a global trend toward tighter crypto regulation, which will likely force companies and traders to reconsider how they engage with digital assets securely within legal frameworks.
Comments (0)
Please sign in to leave a comment
No comments yet. Be the first to share your thoughts!