Hungary, located in Central Europe and home to over 9.5 million residents, has enacted stringent laws that criminalize trading on unauthorized cryptocurrency exchanges. These new regulations stipulate severe penalties, including potential imprisonment for individuals involved in trading or providing services related to unauthorized crypto asset exchanges.
Under the recently implemented criminal code, which started on July 1, 2025, individuals trading on these unauthorized platforms could face varying terms of imprisonment depending on the volume of currency exchanged. Those with trading volumes ranging from 5 million to 50 million forints (approximately $14,600 to $145,950) may be sentenced to up to two years in prison. If the trading volume increases to between 50 million and 500 million forints (about $145,950 to $1.46 million), penalties can escalate to three years of incarceration. For traders dealing with amounts surpassing 500 million forints (over $1.46 million), the potential sentence rises to five years.
Service providers engaged in unauthorized crypto-asset exchange activities are also subject to similar, strict penalties. Their jail time is determined by the volume they handle. If they deal with amounts up to 50 million forints, they might face up to three years in prison. Providers that handle between 50 million and 500 million forints risk a five-year sentence, and for amounts exceeding 500 million forints, the maximum penalty escalates to eight years.
Despite the introduction of these laws, the local regulatory environment for cryptocurrency firms in Hungary remains ambiguous. The Supervisory Authority for Regulatory Affairs (SZTFH) has been granted a 60-day period to develop compliance rules; however, no concrete guidelines have been established to date, leaving many in the industry in limbo.
The repercussions of this criminal legislation are already becoming evident in Hungary’s crypto sector. British financial technology company Revolut has ceased its operations within the country as a direct consequence of the new laws, terminating all cryptocurrency services. The company cited the newly introduced legislation as the cause for its withdrawal yet did not specify when or if it would resume operations in Hungary.
Hungary is a member of the European Economic Area, meaning it is also subject to the European bloc’s Markets in Crypto-Assets Regulation (MiCA). This regulatory framework is aimed at ensuring safer trading practices and protecting market participants within the cryptocurrency landscape.
Hungary is not alone in enacting stringent laws regarding unauthorized crypto services. Several countries, including the United States, the United Kingdom, Hong Kong, and South Korea, have implemented measures that criminalize the provision of unlicensed cryptocurrency trading services. Notably, many of these nations are more focused on penalizing service providers rather than individual traders.
To illustrate, Singapore has recently mandated that local cryptocurrency firms halt any services directed toward overseas clients unless they obtain a proper license. Firms that fail to comply with these new regulations might face fines up to SG$250,000 and/or a prison sentence of up to three years.
The tightening regulations reflect a broader trend in global financial governance, where authorities are increasingly concerned about the potential risks associated with unregulated cryptocurrency trading. As the landscape continues to evolve, stakeholders in the crypto industry must navigate these challenges and regulatory changes diligently.
In summary, Hungary’s introduction of severe penalties for unauthorized trading reflects a significant shift in regulatory attitudes toward cryptocurrency within Central Europe, with implications for the wider industry landscape. The lack of clear compliance frameworks adds to the uncertainty for those engaged in crypto transactions, potentially driving some firms to reconsider their market strategies in the region.