As of July 1, Hungary has enacted strict new laws that could send individuals to prison for trading cryptocurrency through unlicensed platforms. Under the revised Criminal Code, anyone using an “unauthorized crypto-asset exchange service” now faces up to two years in prison, with harsher penalties possible depending on the amount of crypto traded.
The updated legislation doesn’t just target users—unauthorized crypto service providers themselves could face up to three years in prison, with punishments increasing for higher-value transactions.
According to a July 1 report by local outlet Telex, the new laws have caused confusion among crypto businesses operating in Hungary. That’s because the country’s Supervisory Authority for Regulatory Affairs (SZTFH) has been given 60 days to establish compliance guidelines, but has yet to release any official framework. As a result, crypto companies remain uncertain about how to legally continue operations during the interim.
Hungary Introduces New Penalties for “Abuse of Crypto-Assets”
Hungary’s updated Criminal Code now includes specific penalties for what it calls the “abuse of crypto-assets,” targeting individuals who use unauthorized crypto exchanges.
Anyone caught trading between 5 million and 50 million forints (approximately $14,600 to $145,950) through an unlicensed platform could face up to two years in prison.
If the value of the unauthorized trades falls between 50 million and 500 million forints ($145,950 to $1.46 million), the maximum penalty increases to three years in prison for what the law deems a “particularly large value” offense.
For trades exceeding 500 million forints (over $1.46 million), individuals could be sentenced to up to five years in prison under the new legal provisions.
Providing Unauthorized Crypto Exchange Services Now a Criminal Offense in Hungary
Hungary’s second major update to its Criminal Code makes it a criminal offense to operate an unlicensed crypto exchange.
Offering unauthorized crypto exchange services worth up to 50 million forints (about $145,950) can lead to up to three years in prison.
For transactions between 50 million and 500 million forints (up to $1.46 million), the penalty increases to five years.
For violations involving more than 500 million forints, offenders may face a maximum sentence of eight years behind bars.
Revolut Halts, Then Restores Some Crypto Services in Hungary
Earlier this month, UK-based fintech Revolut suspended its crypto services in Hungary due to new legislation.
According to local outlet Portfolio, Revolut’s Hungarian website announced the halt, citing recently introduced laws. The company paused all crypto-related features, including withdrawals, with no timeline for their return.
However, as of Monday, Revolut has reinstated crypto withdrawals. The company also confirmed that its EU division is working to obtain a crypto license within the European Union.
