Hungary has made a sharp turn in its approach to cryptocurrency regulation with the introduction of new legislation criminalizing unlicensed trading. This law raises significant concerns within the fintech sector.
New Criminal Offenses Under Hungary's Crypto Law
The updated Hungarian Criminal Code introduces two new crimes: "abuse of crypto assets" and "providing unauthorized crypto asset exchange services." Under the new law, anyone caught trading cryptocurrencies on unlicensed platforms could face up to two years in prison.
Violations and Potential Consequences
Transactions exceeding HUF 50 million (approximately $140,000) could result in a three-year penalty. Those exceeding HUF 500 million (roughly $1.4 million) may face up to five years of imprisonment. Service providers operating without the proper licenses could receive up to eight years in prison.
Reactions from the Financial Sector and Users
London-based neobank Revolut suspended all cryptocurrency services for Hungarian users on July 9. The platform, boasting over two million users in the country, temporarily halted crypto purchases, deposits, and staking features. Many Hungarian investors are now uncertain whether their previous activities comply with the new law.
The Hungary crypto law has radically transformed the nation’s approach to digital assets, replacing regulatory oversight with criminal enforcement. While the law seeks to bring order to a fast-growing sector, its sudden implementation and lack of clear guidelines have led to confusion and disruption for investors and platforms.
