Hungary Takes a Hard Line on Unlicensed Crypto Activities
In a landmark move, Hungary has officially criminalized the use of unauthorized cryptocurrency exchanges, setting out strict penalties — including up to 8 years in prison — for individuals and operators involved in illegal crypto trading. These new measures, which amend the Hungarian Criminal Code, are part of the government’s broader effort to tighten financial oversight and combat unregulated digital asset activity.
While the law is already in effect, the country’s main financial regulator, the Supervisory Authority for Regulated Activities (SZTFH), has been given 60 days to develop specific regulatory instructions. Until then, clarity on enforcement and implementation remains limited, leaving crypto users and businesses in a state of uncertainty.
What the Law Says: Jail Time for Crypto Users and Operators
The new legal framework establishes criminal liability for both individuals and operators engaging in crypto-related activities outside the bounds of Hungary’s approved licensing system. Here’s how the penalties break down:
- For individuals trading on unauthorized exchanges:
- Up to 2 years in prison for transactions between 5 to 50 million forints (~$14,600–$145,950)
- Up to 3 years for amounts up to 500 million forints
- Up to 5 years for trades exceeding 500 million forints (~$1.46 million)
- For operators of unauthorized crypto services:
- Up to 3 years in prison for handling trades up to 50 million forints
- Up to 5 years for sums up to 500 million
- Up to 8 years for transactions above 500 million forints
This aggressive crackdown is seen as an effort to align Hungary’s regulations with broader European Union standards, particularly ahead of the full implementation of the MiCA (Markets in Crypto-Assets) framework across the EU.
Revolut Reacts Swiftly: Halts Crypto Services in Hungary
In response to the sudden shift, UK-based fintech company Revolut has taken a decisive step — suspending all crypto services in Hungary, including withdrawals. On its Hungarian website, Revolut cited “newly introduced Hungarian legislation” as the reason for the abrupt halt. This development has left thousands of local users unable to access or manage their crypto holdings.
The MiCA Connection: Europe’s Push for Uniform Crypto Laws
While Hungary clamps down on unauthorized platforms, other parts of the EU continue to onboard crypto firms under the MiCA licensing framework, which promotes transparency, investor protection, and regulatory clarity. Recent MiCA license recipients include:
- Kraken in Ireland
- Coinbase in Luxembourg
- Bitvavo in the Netherlands
- Bybit in Austria
This contrast in approaches highlights the growing divide in regulatory strategies — with some jurisdictions embracing crypto innovation, while others focus on strict enforcement.
Hungary’s Crypto Stance: A Warning or a Blueprint?
The Hungarian government’s aggressive stance serves as both a warning to unlicensed operators and a signal to investors: comply or face consequences. With crypto adoption growing across Europe, many countries are struggling to strike a balance between innovation and security. Hungary appears to have opted for maximum deterrence, perhaps to prevent financial crimes such as money laundering or terrorist financing.
Critics argue that such harsh penalties may drive crypto activity underground, pushing users toward untraceable platforms or peer-to-peer trading. Without clear regulatory instructions from SZTFH, it’s also unclear how enforcement will be carried out or whether there will be retroactive consequences for previous activity.
Conclusion: A Defining Moment for Hungary’s Crypto Future
As Hungary awaits detailed guidance from regulators, the future of cryptocurrency in the country hangs in the balance. These new penalties mark a significant turning point in how digital assets are treated within the region. While the goal is to protect consumers and stabilize the financial ecosystem, the absence of transparent, timely instructions risks creating confusion and deterring legitimate innovation.
As the EU’s MiCA regulations continue to roll out, Hungary’s move could either become a cautionary tale or a model for assertive regulation. What remains clear is that the crypto world — in Hungary and beyond — is entering a new era where compliance is no longer optional.
