Hungary Threatens 8 Years in Prison for Unauthorized Crypto Trading

Key Points

1. Hungary’s updated Criminal Code introduces two new offenses related to unauthorized crypto trading, with penalties ranging from 3 to 8 years in prison depending on the transaction value.

2. Approximately 500,000 Hungarians who have invested in crypto with legally declared income could now face criminalization under the vague new law.

3. Revolut has frozen crypto purchases, deposits, and staking services in Hungary due to compliance uncertainties under the new law.

4. Hungary’s restrictive crypto policies contrast with the EU’s unified regulatory framework under MiCA, which also came into effect on July 1.

5. The Hungarian Central Bank cited crypto volatility and lack of regulatory clarity as reasons for prioritizing stability in reserve holdings.