Effective July 1st, Hungary has enacted stringent cryptocurrency regulations aimed at curbing unauthorized digital asset trading. Under the new legal framework, individuals engaging in unlicensed crypto transactions face severe penalties, including imprisonment of up to two years. More substantial violations involving transactions surpassing 50 million forints (around $140,000) carry potential sentences of up to three years, while amounts exceeding 500 million forints may result in up to five years behind bars. Additionally, operators of unlicensed crypto services risk incarceration for as long as eight years, reflecting the government’s robust stance on compliance.
In response to the regulatory overhaul, fintech giant Revolut has announced the suspension of its cryptocurrency offerings within Hungary, signaling a significant shift in the local digital asset landscape. Reports suggest that nearly 500,000 Hungarian investors have previously engaged in crypto markets through legitimate income channels. However, the precise mechanisms for enforcement and regulatory oversight remain to be fully clarified by authorities, underscoring a period of adjustment for the country’s crypto ecosystem.