In recent times, Hungary has adopted an exceptionally stringent stance towards cryptocurrency trading. With the enforcement of the revised criminal code on July 1, 2025, individuals found trading on unlicensed crypto exchanges can now face severe legal repercussions, including imprisonment.
This restriction applies to transactions exceeding HUF 5 million (approximately $14,600). Consequently, Hungary has emerged as one of Europe’s most prohibitive nations for individual cryptocurrency traders.
Severe Consequences for Unlicensed Trading
The recent legislation stipulates that traders involved in transactions ranging from HUF 5 million up to HUF 50 million could be sentenced to a maximum of two years in prison. This ambitious crackdown reflects the country’s effort to regulate the burgeoning cryptocurrency market.
For those conducting trades between HUF 50 million and HUF 500 million (around $145,950 to $1.46 million), the potential sentence increases to three years. Moreover, trading volumes surpassing HUF 500 million could result in a staggering prison term of up to five years. Notably, this tiered punishment system emphasizes the financial scale of the activities involved.
Increased Risks for Exchange Operators
Additionally, entities operating unlicensed trading platforms face even harsher penalties. Reports indicate that companies handling transactions up to HUF 50 million could face prison sentences of three years. For firms managing between HUF 50 million and HUF 500 million, the consequence could involve spending up to five years incarcerated.
The maximum penalty of eight years in prison is reserved for businesses engaged in transactions exceeding that amount, underscoring the gravity of these offenses.
Impact on Financial Services
The ramifications of these stringent regulations are already being felt in the financial sector. Notably, Revolut, a popular UK-based fintech application among Hungarian users, has halted all cryptocurrency operations. A statement issued to local customers attributed this move to the newly imposed Hungarian legislation.
Consequently, users are currently unable to deposit or withdraw their crypto assets, with some having to endure extended periods of waiting as Revolut navigates the legal landscape.
International Comparisons
Globally, other jurisdictions have imposed fines or criminal charges against unlicensed cryptocurrency platforms. Countries such as the US, the UK, Hong Kong, and South Korea enforce similar laws but typically do not pursue individual traders as aggressively as Hungary does.
Singapore has likewise cautioned local companies to refrain from servicing international clients without appropriate licensing, warning of potential prison terms or substantial fines. However, Hungary’s unique approach to penalizing private traders based on transaction amounts sets it apart as a noteworthy case in the realm of cryptocurrency regulation.
Additionally, Hungary’s Supervisory Authority for Regulatory Affairs has a 60-day window from July 1 to delineate specific guidelines, leaving many traders uncertain about acquiring the essential “validation certificate” that every authorized crypto exchange must secure.
Featured image from Goway, chart from TradingView
