Written by: CASEY ALAN, Cointrackdaily
Compiled by: Jessica, Techub News
July 15, 2025 - According to legislation that came into effect on July 1, Hungary's revised (criminal code) stipulates that individuals using unauthorized cryptocurrency exchanges will face up to two years in prison, with specific sentences scaled according to the transaction amount.
The new regulations impose graduated penalties for 'abuse of cryptocurrency assets': transactions involving amounts between 5 million and 50 million forints (approximately $14,600 to $146,000) can result in two years of imprisonment, while amounts exceeding 500 million forints (approximately $1.46 million) can lead to a maximum of five years. Unauthorized cryptocurrency service providers will face even harsher penalties, with the most serious violations potentially resulting in eight years of imprisonment. This legislation has immediately caused market turbulence, with the UK fintech company Revolut initially suspending all cryptocurrency services in Hungary, only partially restoring withdrawal functions this week.
This regulatory framework has left cryptocurrency companies operating in Hungary bewildered. Although the Hungarian Regulatory Affairs Supervisory Authority has 60 days to develop compliance guidelines, no transitional guidance has been provided since the law's implementation. This regulatory vacuum leaves cryptocurrency enterprises unclear about compliance requirements while facing potential criminal liabilities from continued operations.
The severe penalties reflect Hungary's tough stance on unregulated crypto activities, contrasting sharply with the broader (Crypto-Asset Markets Regulation) (MiCA) regulatory framework of the European Union. Revolut's temporary service interruption and subsequent limited restoration highlight the immediate operational challenges faced by international cryptocurrency service providers in adapting to Hungary's new legal environment.
Editor: Severe, even harsher than the average sentence for rape (the average sentence for rape in Hungary is 4 years). Ironically, how can one identify if someone is secretly using Binance? Moreover, they provided 60 days to formulate detailed rules, but during that time, companies may still face lawsuits for 'operating without a license,' resembling 'drawing the target before letting people shoot arrows.' It’s truly darkly humorous legislation.
