Key Takeaways:
- Hungary now imposes prison sentences up to 8 years for unauthorized crypto trading and unlicensed exchange services.
- Penalties increase based on the value of the crypto transactions, starting from two years for significant amounts.
- Regulatory uncertainty persists as businesses await compliance guidelines from Hungarian authorities.
Hungary has revised its Criminal Code to impose prison sentences on individuals involved in unauthorized crypto trading or offering unlicensed crypto services.
Effective July 1, trading crypto-assets through unlicensed exchanges can lead to up to two years in prison, with harsher penalties for higher-value transactions – rising to three years for large trades and up to five years for exceptionally significant amounts.
Hungary has enacted strict new cryptocurrency laws effective July 1, criminalizing “unauthorized” crypto trading with penalties of up to 5 years in prison for individuals and 8 years for service providers. Revolut has suspended crypto services in Hungary. The sweeping law,…
— Wu Blockchain (@WuBlockchain) July 14, 2025
Similarly, operating an unlicensed crypto-asset exchange service carries a base penalty of three years, which can increase to five or eight years if the transaction value exceeds 500 million forints (about $1.46 million) or higher.
The law has sparked confusion among crypto businesses, as Hungary’s Supervisory Authority for Regulatory Affairs has 60 days to release detailed compliance guidelines.
This delay has created uncertainty within the sector.
In response to the unclear regulatory environment, UK-based fintech firm Revolut has temporarily paused its crypto-related services in Hungary.
Although it later reinstated withdrawals, the company confirmed that its EU entity is working to obtain a crypto license to meet regional requirements and resume full operations under the new legal framework.
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