The new Hungarian Criminal Code introduces severe penalties for those using unlicensed exchanges.
Hungary has introduced heavy penalties in its criminal code for individuals trading digital assets through unauthorized platforms. The new legislation, which came into effect on July 1, 2025, represents one of the strictest regulatory frameworks for cryptocurrencies in Europe.
The updated Hungarian Criminal Code now provides for prison sentences of up to two years for anyone using unlicensed exchange services. The measure directly targets users trading Bitcoin or other cryptocurrencies on platforms not regulated by local authorities.
Penalties increase progressively based on the value of transactions:
- for transactions between 5 and 50 million Hungarian forints (approx. $14,600–$145,950): up to two years in prison;
- for transactions considered of “particularly large value” between 50 and 500 million forints ($145,950–$1.46 million): up to three years in prison;
- for transactions over 500 million forints: up to five years in prison.
Higher risks for service providers
The new Hungarian regulations also target unlicensed crypto service providers. Anyone operating a crypto trading platform without the required licenses faces even harsher penalties:
- up to three years in prison for services handling up to 50 million forints;
- up to five years for operations up to 500 million forints;
- up to eight years for activities exceeding 500 million forints.
According to local news outlet Telex, the Supervisory Authority for Regulatory Affairs (SZTFH) will have 60 days to develop the necessary compliance frameworks, but in the meantime, companies are operating without clear guidance.
This climate of uncertainty has already had visible consequences: Revolut, the British fintech firm, initially suspended all crypto-related services in Hungary, citing the “recently introduced Hungarian legislation.” The company later reinstated only its withdrawal services.
