Hungary’s new Criminal Code, effective July 1, 2025, imposes up to 2–8 years in prison for using or operating unauthorized crypto exchanges.
Updating its Criminal Code, Hungary has introduced strict new regulation that criminalizes using or operating unauthorized crypto exchanges.
Accordingly, as of July 1, 2025, individuals who trade crypto on platforms that are not officially approved can face up to two years in prison, with penalties increasing with the value of the trades. For trades worth between 5 million and 50 million forints ($14,600 to $145,950), the sentence can reach two years. For trades exceeding 50 million forints, the prison term could be up to three years.
People who provide unauthorized crypto exchange services now also face up to three years in prison for transactions below 50 million forints. For larger amounts, the punishment can be up to eight years.
Crypto companies in Hungary are unsure how to comply, as the national regulatory authority has 60 days to create official guidelines, which are reportedly not yet available.
The EU recently introduced MiCA, effective June 2023, requiring authorization for crypto service providers, with transitional measures until July 2026.
UK-based fintech company Revolut briefly suspended crypto services in Hungary due to the new law. However, it has now resumed crypto withdrawals and is working toward obtaining an EU crypto license.
Meanwhile, regulation around the world for unauthorized crypto trading ranges from supportive frameworks to outright bans, with authorities citing consumer protection and financial stability. For instance, while Singapore has progressive regulation under the Payment Services Act, which requires licensing for exchanges with strict AML/CFT compliance, countries like Bangladesh and China ban all crypto activities, with penalties including fines and imprisonment.
Regulating cryptocurrencies is inherently challenging due to the fact that crypto was created on the fundamental principle of decentralization. Meanwhile, regulation often relies on centralized frameworks to enforce compliance. This clash is what makes regulation so difficult for authorities around the world.
