Hungary has officially amended its Criminal Code to introduce strict penalties, including prison time, for individuals and businesses involved in unauthorized cryptocurrency trading and exchange services.
New Crypto Law in Hungary Comes Into Effect
As of July 1, 2025, trading cryptocurrencies through unauthorized platforms in Hungary is now a criminal offense. The updated legislation introduces prison sentences of up to two years for users of unregistered crypto exchanges and up to eight years for illegal service providers, depending on the value of the transactions.
According to the revised law, using an unauthorized crypto-asset exchange service involving trades between 5 million to 50 million forints (approximately $14,600 to $145,950) could lead to up to two years in prison. For transactions exceeding 50 million forints, penalties increase to three years.
Harsh Penalties for Unauthorized Crypto Service Providers
Crypto platforms offering services without regulatory approval now face even steeper consequences. Providers dealing in trades up to 50 million forints could receive up to three years in prison. This escalates to five years for values up to 500 million forints ($1.46 million), and up to eight years for cases exceeding that amount.
The laws are part of a broader crackdown on unregulated crypto trading in Hungary, aligning with increasing pressure across the EU to control digital asset activities through licensed providers only.
Regulatory Uncertainty Clouds Local Crypto Market
Local news outlet Telex reported that the new regulations have caused confusion within Hungary’s crypto sector. The Supervisory Authority for Regulatory Affairs (SZTFH) has been given 60 days to develop the compliance framework, but no official guidance has been published, leaving crypto companies in a legal gray area.
Revolut Temporarily Pulled Crypto Services in Response
UK-based fintech company Revolut reacted swiftly to the legislation by suspending all crypto-related services in Hungary, including withdrawals. A notice on Revolut’s Hungarian website cited the new legal changes as the reason, stating there was no estimated timeline for service reinstatement.
However, Revolut has since resumed crypto withdrawals, as reported by Hungarian financial news outlet Portfolio. The company confirmed that its EU branch is actively pursuing a European crypto license, which would help it legally operate in Hungary and other EU markets under MiCA regulations.
Hungary Tightens Grip on Digital Asset Activities
The move marks a significant step in Hungary’s stance toward cryptocurrency regulation, emphasizing the importance of licensed crypto trading platforms and legal compliance. As the EU’s Markets in Crypto-Assets (MiCA) framework begins to influence national policies, Hungary appears to be taking a firm position on controlling digital finance within its borders.
