Hungary fights against illegal cryptocurrency circulation$BTC $BNB $BANANAS31

As of July 1, a law has come into effect in Hungary that changes the Criminal Code. Now, transactions on unauthorized crypto platforms can lead to imprisonment. Local media reports that the law could affect around 500,000 people in Hungary who legally acquired crypto assets.

Fines depend on the transaction amount:

• Up to 50 million forints (about $146,000) — up to 2 years in prison

From 50 million to 500 million forints (about $1.46 million) — up to 3 years in prison

• Over 500 million forints — up to 5 years in prison

• Service providers on illegal exchanges — up to 8 years in prison

"Anyone who exchanges crypto assets for large sums, violating the verification law, can face up to three years in prison. If the amount is particularly large, the sentence increases to five years. For particularly significant amounts — up to eight years," the document states.

Many crypto companies in Hungary do not understand how the law will be applied and fear criminal penalties. The Hungarian Financial Supervisory Authority (SZTFH) has been given 60 days to develop compliance rules for the new law. Until then, confusion is likely to remain.