You Can Actually Go to Jail for Crypto Trading.🚨
Under the new law, individuals using an unlicensed exchange could face up to two years in prison. This comes as a significant shock to many crypto users. While millions globally use various crypto platforms, both licensed and unlicensed, Hungary's decision to take such a drastic step is truly thought-provoking.
The regulation goes even further, stipulating up to five years in prison for those who conduct unauthorized crypto transactions ranging from 50 million Hungarian Forints (approximately $150,000) to 500 million Forints (approximately $1.5 million). The severity of these penalties is mind-boggling. That they could be even harsher than those imposed by many countries for crimes like tax evasion, money laundering, or fraud makes the "you've lost your mind" reaction entirely justified.
🔹Is it MiCA-Compliant?
Hungarian authorities are defending the severity of these penalties by claiming they are compliant with the European Union's Markets in Crypto-Assets (MiCA) regulation. However, MiCA's primary goal is to ensure transparency and investor protection in crypto markets. Whether such an application, directly linking the use of an unlicensed exchange or exceeding a certain transaction amount to prison sentences, truly aligns with the spirit of MiCA is debatable. It's well-known that MiCA itself does not stipulate such harsh sanctions.
🔹Where is the Crypto World Heading?
Hungary's move will likely spark new debates about the future of cryptocurrencies and governments' attitudes towards them. While some countries embrace crypto, even considering it a national currency, the existence of nations imposing such severe restrictions highlights the diversity and uncertainty within the crypto ecosystem.
Such regulations could deter investors looking to engage in crypto transactions through legal means, potentially pushing them towards darker, unregulated markets. Let's remember that regulations are meant to organize and protect the market, not to destroy or ban it.
What do you think? 💬
