Starting July 1, 2025, Hungary has enacted amendments to its Criminal Code that impose prison sentences of up to 8 years for individuals engaging in unauthorized cryptocurrency trading or providing unlicensed exchange services. The severity of penalties increases based on transaction amounts:
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Up to approximately $146,000: up to 3 years imprisonment
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Between $146,000 and $1.46 million: up to 5 years imprisonment
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Above $1.46 million: up to 8 years imprisonment
These stringent regulations have raised concerns among crypto service providers operating in Hungary. The Hungarian Financial Supervisory Authority (SZTFH) is tasked with implementing compliance frameworks within 60 days, although detailed guidance is currently lacking.
Impact on Crypto Users and Service Providers
The new law affects both users and providers of crypto services. Individuals trading on unauthorized platforms face legal repercussions, while unlicensed service providers encounter even harsher penalties. Some companies, such as Revolut, temporarily suspended crypto services in Hungary but have since restored withdrawal capabilities while working to obtain licenses compliant with EU regulations.
Safeguarding Your Crypto Assets
Given the increasing regulatory scrutiny, it is vital to prioritize security and compliance. Trusted exchanges like Binance offer regulated trading environments with robust safeguards.
To protect your holdings from theft and hacks, use hardware wallets like Ledger, which provide secure offline storage for private keys.
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Conclusion
Hungary’s tightened criminal penalties for unauthorized crypto activities reflect a broader trend of increasing regulation in the crypto space. Crypto users and providers must stay informed and ensure compliance to avoid significant legal risks.