David Edwards
Hungary has enacted new legislation introducing criminal penalties for unauthorized cryptocurrency trading and service provision, marking one of the strictest regulatory stances in the European Union. The amendments to Hungary’s Criminal Code, effective July 1, impose significant prison sentences for individuals and entities operating outside sanctioned crypto frameworks.
Severe Penalties for Unauthorized Crypto Activities
Under the revised legal framework, individuals using unauthorized crypto-asset exchange services to trade between HUF 5 million and HUF 50 million (approximately $14,600 to $145,950) may face up to two years in prison. Penalties escalate to three years for transactions deemed of “particularly large value” (HUF 50 million to HUF 500 million) and to five years for offenses exceeding HUF 500 million ($1.46 million).
Similarly, unauthorized providers of crypto-asset exchange services face up to three years of incarceration for facilitating trades below HUF 50 million, up to five years for mid-tier infractions, and up to eight years for offenses surpassing HUF 500 million.
Legal Ambiguity Fuels Industry Confusion
Despite the enforcement of these laws, Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has yet to release comprehensive compliance guidelines. The agency has a 60-day window to formalize these rules, leaving market participants in a state of regulatory uncertainty.
According to local outlet Telex, the absence of interim guidance has led to confusion among cryptocurrency businesses operating in Hungary, as firms are unclear on how to align with the new legal requirements.
Revolut Responds to Regulatory Shifts
Amid the legal turmoil, UK-based fintech company Revolut briefly suspended all crypto-related services in Hungary, including withdrawals. The firm cited the “recently introduced Hungarian legislation” as the reason behind the halt. As of July, Revolut has reinstated crypto withdrawals while continuing efforts to secure an EU-wide crypto license under MiCA (Markets in Crypto-Assets Regulation).
These legislative developments come as Hungary moves to align with broader EU regulatory initiatives while asserting a uniquely stringent enforcement posture on unauthorized digital asset activity.
