Hungary has enacted new laws regarding crypto trading, introducing criminal penalties for the use of unauthorized crypto exchange platforms.
Introduction of New Laws
As of July 1, Hungarians using an 'unauthorized crypto-asset exchange service' may face prison sentences of up to two years for trades between 5 million and 50 million forints ($14,600 to $145,950). For transactions exceeding 50 million forints, the penalty may increase to three years, and for trades above 500 million forints ($1.46 million), up to five years may be required under the updated Criminal Code.
Consequences for Crypto Service Providers
The new law also imposes criminal penalties on crypto service providers operating without authorization, with prison sentences of up to three years for trades under 50 million forints and escalating to five years for trades up to 500 million forints and to eight years for transactions beyond that threshold. Hungary's Supervisory Authority has 60 days to establish compliance frameworks, but the lack of interim guidelines creates uncertainty for crypto businesses.
Changes in Revolut's Operations in Hungary
The introduction of the law has prompted operational shifts from major players like Revolut. The UK-based fintech firm initially suspended all crypto-related services in Hungary, including crypto withdrawals, but has since partially resumed crypto withdrawals while halting new crypto transactions. Revolut is also working to secure a crypto license within the EU to restore full services.
Hungary's stringent measures regarding crypto trading underscore the government's efforts to regulate digital assets and tighten the crackdown on unauthorized crypto services.
