Hungary’s Updated Criminal Code May Impose Prison for Unauthorized Bitcoin Exchange Use and Services

Key Points

1. Hungary's amended Criminal Code, effective July 1, criminalizes unauthorized crypto-asset exchange activities, with penalties ranging up to five years in prison for transactions exceeding 500 million forints (~$1.46 million).

2. Unauthorized crypto service providers face stricter penalties, including imprisonment for offenses involving up to 50 million forints (~$145,950), though regulatory clarity is still pending.

3. The regulatory changes have already impacted market participants, such as Revolut, which temporarily suspended crypto withdrawals before reinstating them, reflecting compliance challenges.

4. Hungary’s Supervisory Authority (SZTFH) has a 60-day window to establish enforcement and licensing frameworks, which will be critical for crypto operators seeking lawful participation in the digital economy.