Hungary has introduced new strict rules regarding cryptocurrency firms, now making the use of unlicensed crypto exchanges a criminal offense.
Tightening Rules for Crypto Exchanges
According to the new laws, it is illegal to use unlicensed cryptocurrency exchanges. This change signifies a major shift in the country's stance towards digital assets and crypto trading.
Penalties for Breaking the Law
Using unlicensed crypto exchanges is now considered a felony. Offenders could face up to five years in prison, while operators of such exchanges could encounter even harsher penalties, including up to eight years. The law targets high-value crypto transactions exceeding 50 million Hungarian forints.
Support for Crypto Industry Growth in Hungary
Despite the crackdowns, Hungary is not turning away from cryptocurrency. The country is exploring safer avenues for the growth of its digital economy. In 2022, the Hungarian and Thai fintech associations signed a Memorandum of Understanding to develop blockchain technologies in their countries.
Recent legislative changes in Hungary continue to spark discussions about the future of cryptocurrency in the country, as authorities seek ways to foster development in this area.
