{"id":14046,"date":"2025-07-15T06:59:42","date_gmt":"2025-07-15T04:59:42","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=14046"},"modified":"2025-07-15T06:59:42","modified_gmt":"2025-07-15T04:59:42","slug":"hungary-strengthens-regulations-on-unapproved-cryptocurrency-trading","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/07\/15\/hungary-strengthens-regulations-on-unapproved-cryptocurrency-trading\/","title":{"rendered":"Hungary Strengthens Regulations on Unapproved Cryptocurrency Trading"},"content":{"rendered":"

<\/p>\n

\n

Hungary has enacted laws that could impose imprisonment on individuals engaging in crypto transactions through an unauthorized cryptocurrency exchange.<\/p>\n

Those utilizing a so-called \u201cunauthorized crypto-asset exchange service\u201d may face a maximum of two years in prison, with penalties escalating based on the traded amount<\/a>, as indicated by an amendment<\/a> to the nation\u2019s Criminal Code that took effect on July 1.<\/p>\n

The modified statutes also target unauthorized crypto service providers<\/a> with a potential prison sentence of up to three years, which may increase depending on the value of illegal transactions.<\/p>\n

Local media outlet Telex reported<\/a> on July 1 that these laws have caused confusion amongst crypto companies operating in the country, as Hungary\u2019s Supervisory Authority for Regulatory Affairs (SZTFH) has 60 days to create compliance frameworks for the regulations, yet no guidance is available in the interim.<\/p>\n

New law for \u201cmisuse of crypto-assets\u201d<\/h2>\n

The initial modification to Hungary\u2019s Criminal Code imposes a sanction of up to two years in prison if an unauthorized crypto exchange is employed for transactions between 5 million to 50 million forints ($14,600 to $145,950).<\/p>\n

This sanction escalates to a maximum of three years if the crime involves \u201ca particularly substantial amount\u201d ranging from 50 million to 500 million forints ($145,950 to $1.46 million).<\/p>\n

A highlighted excerpt of Hungary\u2019s revised Criminal Code detailing the new penalties for utilizing unauthorized crypto exchanges. Source: <\/em>National Legislation Database of Hungary<\/em><\/a><\/figcaption><\/figure>\n

Violations exceeding 500 million forints can incur a penalty of up to five years.<\/p>\n

\u201cUnauthorized\u201d crypto exchanges now a criminal offense<\/h2>\n

The secondary amendment pertaining to crypto stipulates up to three years of incarceration for those offering unauthorized \u201ccrypto-asset exchange service activities\u201d for amounts up to 50 million forints ($145,950).<\/p>\n

Related: <\/strong><\/em>Malta regulator: No MiCA licenses at risk after EU review<\/strong><\/em><\/a><\/p>\n

The increases in penalties mirror those for unauthorized exchange usage, with crypto service providers facing sentences of up to five years for offenses involving amounts up to 500 million forints ($1.46 million) and up to eight years for those surpassing 500 million forints.<\/p>\n

Revolut ceases, then restores some cryptocurrency services<\/h2>\n

Earlier this month, local outlet Portfolio reported<\/a> that the UK-based fintech entity Revolut suspended its services in Hungary due to the new laws.<\/p>\n

A segment of Revolut\u2019s Hungarian website<\/a> stated that it had halted all crypto-related services within the country \u2014 including withdrawals from the platform \u2014 owing to \u201crecently implemented Hungarian legislation,\u201d and lacked a definite timeline for the resumption of services.<\/p>\n

Nonetheless, Portfolio reported<\/a> on Monday that Revolut had reinstated crypto withdrawals only. The company also indicated that its EU division is pursuing a cryptocurrency license within the EU.<\/p>\n

Magazine: <\/strong><\/em>Move to Portugal to become a crypto digital nomad \u2014 Everybody else is<\/strong><\/em><\/a>\u00a0<\/p>\n