In a rapidly evolving digital landscape, Hungary has emerged as a nation taking stringent measures against cryptocurrency trading activities. As of July 1, 2025, the revised criminal code of Hungary marks a significant shift, imposing severe penalties on those engaged in unauthorized crypto transactions. This decisive move positions Hungary among the strictest jurisdictions in Europe for individual crypto enthusiasts. As the global crypto industry watches closely, the implications of these laws are profound, affecting both local and international exchange platforms.

Hungary’s Firm Stance on Cryptocurrency Trading

Stringent Consequences for Crypto Traders

In Hungary, the recent legislative amendments have ushered in a new era for digital asset management. The revised criminal code prescribes strict imprisonment for individuals involved in cryptocurrency trading without proper authorization. If transactions worth between HUF 5 million and HUF 50 million are conducted on unregistered platforms, individuals could face up to two years in prison. The severity escalates for transactions ranging from HUF 50 million to HUF 500 million, risking a three-year prison term, while dealings exceeding HUF 500 million could result in a five-year sentence. These penalties are meticulously tiered, reflecting the transaction volume as the sole determinant.

The Hungarian Ministry of Justice has disseminated an official document detailing these stringent measures, underscoring the government’s commitment to regulating digital currency exchanges.

Heightened Penalties for Service Providers

The repercussions extend beyond individual traders to service providers operating unlicensed cryptocurrency exchanges. Enterprises processing up to HUF 50 million face a potential three-year jail sentence. If their transaction volume falls between HUF 50 million and HUF 500 million, the risk increases to a five-year incarceration. Firms exceeding these amounts are liable to eight years in prison, highlighting the severe consequences for corporate violators in the crypto industry.

Impact on Cryptocurrency Services: Revolut’s Withdrawal

The effects of Hungary’s legislative updates are already visible. Revolut, a renowned UK-based fintech application utilized by numerous Hungarians, has ceased its crypto services, including buying, selling, and staking digital assets. A message to its Hungarian users attributed this halt to the new local legal framework. Consequently, Revolut’s customers face an indefinite wait for the restoration of their crypto functionalities, pending the company’s legal adjustments.

Global Context and Comparisons

While nations such as the US, UK, Hong Kong, and South Korea impose fines or imprisonment on unlicensed crypto operators, their regulations seldom target individual traders. For instance, Singapore recently demanded that local firms cease unlicensed operations with foreign clients, threatening fines or prison sentences. Yet, Hungary’s approach distinguishes itself by imposing strict measures on private traders based solely on transaction amounts.

Hungary’s Supervisory Authority for Regulatory Affairs has a 60-day window from July 1 to clarify the regulations and define the process for obtaining the necessary “validation certificate” for authorized exchanges. Until these guidelines are established, compliance remains in a state of uncertainty.

Is Hungary’s Crypto Regulation the Strictest in Europe?

Hungary’s regulations are among the most severe concerning unauthorized trading activities. However, the effectiveness and fairness of these laws largely depend on their implementation and the enforcement infrastructure.

How Will Hungary’s Regulations Affect the Global Crypto Market?

Given Hungary’s small market size in the global context, the direct impact may be limited. However, the move could inspire similar regulatory actions in other jurisdictions, potentially reshaping global crypto trading practices.

Can Traders in Hungary Still Access Cryptocurrency Exchanges?

Yes, but they must ensure the exchanges have the necessary licenses and adhere to Hungary’s legal requirements to avoid severe penalties.

What Steps Should Crypto Exchanges Take in Response to These Regulations?

Exchanges should prioritize obtaining the “validation certificate” as soon as Hungary’s Supervisory Authority outlines the process. Compliance with all local regulatory requirements is essential to avert legal complications.

This comprehensive guide delves into Hungary’s new regulatory landscape for cryptocurrency trading, exploring its nationwide implications and potential ripple effects across the global market. The FAQ section aims to equip readers with necessary insights, fostering informed decision-making in a complex and evolving environment.