Hungary has amended its Criminal Code to criminalize unauthorized cryptocurrency exchange activities, imposing prison sentences that escalate with transaction value. The legislation, effective July 1, introduces severe penalties for unlawful digital asset services.
Transactions exceeding 500 million forints (~$1.46 million) now carry maximum sentences of five years imprisonment. Penalties apply even at lower thresholds, with unauthorized service providers facing incarceration for offenses involving just 50 million forints (~$145,950). Regulatory specifics remain pending finalization by authorities.
Market disruption surfaced rapidly following the regulatory shift. Digital banking platform Revolut temporarily suspended Hungarian cryptocurrency withdrawals before reinstating services, highlighting industry-wide compliance challenges.
Hungary’s Supervisory Authority (SZTFH) must establish enforcement protocols and licensing frameworks within 60 days. This forthcoming guidance will determine lawful crypto service participation in Hungary’s evolving digital economy landscape.