Hungary Criminalizes Unauthorized Crypto Trading With Prison Sentences
Hungary has officially updated its Criminal Code, making it a criminal offense to trade or operate crypto services through unlicensed platforms — with penalties including prison time of up to eight years, depending on the transaction amount.
New Laws Target Unauthorized Crypto Activities
As of July 1, individuals found using unauthorized cryptocurrency exchanges in Hungary could face up to two years in prison. The punishment scales with the value of the transactions:
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2 years for trades between 5 million to 50 million HUF (~$14,600–$145,950)
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3 years for amounts between 50 million to 500 million HUF (~$145,950–$1.46 million)
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Up to 5 years for trades exceeding 500 million HUF (~$1.46 million)
In parallel, those who operate unauthorized crypto-asset services now face up to three years in prison, with penalties increasing similarly for larger volumes:
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5 years for transactions up to 500 million HUF
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8 years for amounts over 500 million HUF
Confusion Among Crypto Firms
Local outlet Telex reported that crypto companies are confused by the law’s sudden implementation, as Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has 60 days to issue compliance guidelines, which are still pending. Until then, crypto businesses are left uncertain about how to proceed legally.
The Offense: “Abuse of Crypto-Assets”
The legal changes introduce a new classification: “abuse of crypto-assets.” This specifically criminalizes the use or facilitation of crypto services without proper regulatory approval.
The intent is to bring Hungary’s crypto landscape in line with broader EU efforts to combat money laundering and financial fraud — particularly as the EU’s MiCA (Markets in Crypto-Assets) regulation takes effect.
Revolut Halts and Partially Resumes Services
The legal uncertainty has already prompted business actions. UK-based fintech company Revolut temporarily halted all crypto services in Hungary, including withdrawals, citing the new legislation.
However, as of July 15, Revolut reinstated withdrawal functionality, while confirming that its EU-based arm is actively pursuing a full crypto license under European regulatory frameworks.
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