As of July 1, 2023, Hungary has enacted new legislation that criminalizes unauthorized cryptocurrency trading. This has raised concerns among many crypto users in the country.
New Legislation in Hungary
On July 1, Hungary implemented one of the toughest cryptocurrency regulations in Europe. Under the new law, unauthorized crypto trading is now a criminal offense. Individuals engaging in such activities could face up to 5 years in prison, while service providers may receive up to 8 years.
Revolut Suspends Services
In response to the sweeping legislation, financial super-app Revolut has suspended its crypto services in Hungary, citing legal ambiguity and risk of penalties as major concerns. Currently, users on Revolut in Hungary cannot buy, sell, or hold cryptocurrencies through the platform, forcing many to rethink their digital asset strategies.
Risks for Crypto Enthusiasts
Hungary's new law appears to be part of a broader effort to control the crypto space. However, failing to provide clear guidelines or a registration process for authorized trading risks criminalizing ordinary users who may not even realize they are in violation. Critics argue that the government should have offered a regulatory framework before implementing strict penalties.
Without revisions or clear directives, Hungary's new stance could drive crypto activity underground or push users to foreign platforms, ironically making it harder to monitor and regulate.
