Hungary Cracks Down on Crypto: Up to 8 Years in Prison for Unauthorized Exchanges
New law criminalizes use and operation of unlicensed crypto services as country tightens digital asset regulation
BUDAPEST — As of July 1, Hungary has enacted sweeping amendments to its Criminal Code that impose prison sentences of up to eight years for individuals or entities involved in unauthorized cryptocurrency trading or exchange operations.
Under the new law, individuals who trade crypto via unlicensed platforms could face up to two years in prison, with penalties increasing in severity based on the monetary value of the transactions. Similarly, those providing unauthorized crypto services may receive three to eight years, depending on transaction volume.
Offences over 500 million forints can carry a penalty of up to five years.
New Crypto Offense: ‘Abuse of Crypto-Assets’
The legislation introduces a new offense called “abuse of crypto-assets,” which categorizes trading on unauthorized crypto platforms as a criminal act.
Transactions valued between 5 million and 50 million forints ($14,600 to $145,950) carry a two-year prison sentence.
Offenses ranging from 50 million to 500 million forints ($145,950 to $1.46 million) may result in three years of imprisonment.
Those exceeding 500 million forints ($1.46 million) could face up to five years behind bars.
In parallel, unlicensed crypto service providers are subject to similar thresholds, with up to eight years of prison time for handling over 500 million forints in crypto assets.
Regulatory Uncertainty as Firms Seek Guidance
Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has been granted 60 days to issue compliance guidelines, but crypto businesses currently lack official instruction, creating legal uncertainty for operators in the interim.
Revolut Temporarily Pulls Back, Then Reinstates Crypto Withdrawals
UK-based fintech firm Revolut briefly suspended all crypto-related services in Hungary earlier this month in direct response to the new legislation. A notice on its Hungarian website cited “recently introduced Hungarian legislation” as the reason for the pause.
However, Revolut reversed its position days later, restoring crypto withdrawals. The company confirmed that its EU arm is actively pursuing a MiCA-compliant crypto license to continue operations across the European Economic Area.
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