Market News

New Hungarian Law Targets Unauthorized Crypto Trading with Harsh Penalties

Hungary has introduced a tough new law regulating cryptocurrency trading and exchanges.

The legislation includes prison sentences of up to five years for unauthorized trading activities and eight years for unlicensed exchange operators.

Effective from July 1, the law prescribes escalating penalties based on the transaction amounts involved.

For trades below 50 million forints (approximately $146,000), individuals face two years in prison, while amounts between 50 million and 500 million forints could lead to three years.

Transactions exceeding 500 million forints carry a five-year sentence, creating significant deterrents for potential violators.

The law has raised concerns, particularly for the estimated 500,000 individuals in Hungary who legally own cryptocurrencies.

Many local crypto businesses are apprehensive about how the law will be enforced without a clear compliance framework, which is still pending from the Hungarian Financial Supervisory Authority.

In response to the new regulations, Revolut has suspended its cryptocurrency services for Hungarian customers, citing compliance challenges.

Although Revolut has reopened withdrawals, the full restoration of services remains uncertain until regulatory clarification is provided.

This new law highlights Hungary's strict stance on crypto regulation, raising questions about the balance between consumer protection and market accessibility.