Stacy Pereira
- Hungary amends crypto law, introducing jail time for unlicensed traders and exchanges.
- Prison terms range from 2 to 8 years for the violation, based on the transaction size.
- Platforms like Revolut have suspended crypto services in Hungary, impacting over 2 million users.
Hungary has enacted sweeping reforms targeting the use and supply of cryptocurrencies, which have come into effect on July 1, 2025. The revised legislation introduces two criminal offenses called “abuse of crypto assets” and “providing unauthorized crypto asset exchange services.”
Prison sentences for unauthorized trading
Under the abuse of crypto assets offense, individuals trading via unlicensed exchanges can face prison sentences of varying durations.
- Up to 2 years for transactions between 5–50 million Hungarian forints (HUF) or ~$14,600–$145,950
- Up to 3 years for transactions between 50–500 million HUF or ~$145,950–$1.46 million
- And up to 5 years if amounts exceed 500 million HUF or ~$1.46 million
The second offense, ‘providing unauthorized crypto asset exchange services’, penalizes service providers operating without proper validation:
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- Up to 3 years in prison for handling HUF 5–50 million,
- Up to 5 years for up to HUF 500 million,
- And a maximum of 8 years for handling over HUF 500 million in unauthorized services
Interestingly, the parliament has also introduced a new licensing regime where all crypto transactions, whether crypto‑to‑fiat or crypto‑to‑crypto, must be certified by an authorized “crypto‑asset conversion validation service provider.” Transactions without this compliance certificate are deemed invalid and carry criminal liability.
There are an estimated 500,000 Hungarian crypto users who will be impacted by this move. The law’s sudden enforcement, combined with a lack of compliance guidelines, has plunged the sector into legal limbo. Critics say Hungary has taken a more punitive stance than other EU countries, diverging from the EU’s Markets in Crypto‑Assets (MiCA) framework meant to harmonize crypto regulation rather than criminalize it.
Major platforms like Revolut have suspended crypto services in Hungary, impacting over 2 million users. Critics argue the law could stifle local innovation and financial inclusion and encourage capital flight, while isolating Hungary within the broader European financial landscape.
