Hungary tightens crypto regulation: Up to 2 years in prison for trading on unlicensed exchanges

Hungary has just updated its Criminal Code, imposing potential prison sentences for individuals and organizations using or operating unlicensed cryptocurrency exchanges (#crypto ). The new law, effective from July 1, stipulates that users can be imprisoned for up to two years for trading on illegal exchanges, and service providers can face up to three years in prison. The penalties will increase depending on the value of the violating transactions.

Strict regulations and initial confusion

Specifically, using unlicensed exchanges with a value ranging from 5 million to 50 million #Forint (14,600 - 145,950 USD) can lead to 2 years in prison. For unlicensed service providers, the sentence can be up to 3 years in prison, increasing to 8 years for transactions exceeding 500 million Forint (1.46 million USD).

The new law has caused confusion for crypto companies operating in #Hungary , as the Regulatory Affairs Supervision Agency (SZTFH) has 60 days to develop a compliance legal framework, but currently, there are no detailed guidelines.

Revolut, a major fintech company, initially suspended all crypto-related services in Hungary but later allowed withdrawals to resume. Revolut's EU branch is working to obtain crypto licenses in the region. This move by Hungary reflects a global trend towards increasing control over the crypto market to ensure safety and transparency.