Hungary has introduced strict penalties for individuals and companies involved in unauthorised cryptocurrency trading or services. Under the updated Criminal Code, using unauthorised crypto exchanges can lead to two years in prison, with longer terms for larger trades.
Crypto service providers operating without authorisation face even harsher penalties. Sentences can reach up to eight years for transactions exceeding 500 million forints (around $1.46 million).
The updated law defines new offences such as 'abuse of crypto-assets', aiming to impose stricter control over the sector.
The implementation has caused confusion among crypto companies, with Hungary's Supervisory Authority for Regulatory Affairs (SZTFH) yet to publish compliance guidelines. Businesses now face a 60-day regulatory vacuum with no clear direction.
UK fintech firm Revolut responded by briefly halting crypto services in Hungary, citing the new legislation. It has since reinstated crypto withdrawals, while its EU entity works towards securing a regional crypto licence.
