Why Hungary's Crypto Ban May Not Be What It Seems

Key Points

1. Hungary's new Criminal Code sections 394/A and 408/A, effective July 1, 2025, do not ban cryptocurrency ownership but criminalize specific activities like large-scale shadow-market exchanges.

2. Legal experts clarify that the regulations target domestic shadow markets, not everyday crypto use, with criteria such as local headquarters or Hungarian-language support determining applicability.

3. International platforms like Kraken and Binance remain accessible to Hungarian users as long as they do not actively target the Hungarian market, aligning with MiCA-style regulations.

4. A regulatory vacuum exists as detailed implementation rules are still pending, causing uncertainty and cautious approaches from companies like Revolut.

5. The law aims to regulate large-scale illegal exchanges within Hungary, not criminalize general crypto activities, with full clarity expected by autumn 2025.