Hungary Enforces Strict Penalties for Unauthorized Crypto Trading
- Individuals trading on unauthorized crypto exchanges face up to two years in prison for transactions between 5 million and 50 million forints ($14,600 to $145,950).
- Penalties increase to three years for trades valued between 50 million and 500 million forints ($145,950 to $1.46 million), and up to five years for amounts exceeding this threshold.
- Unauthorized crypto service providers can face similar penalties, with up to eight years in prison for offenses over the value of 500 million forints.
- The new laws took effect on July 1, creating confusion among local crypto companies awaiting compliance guidance from Hungary’s Supervisory Authority.
- Revolut temporarily halted its crypto services in Hungary due to these regulations but has since reinstated some functionalities like withdrawals.
The updated Criminal Code marks a significant shift in how Hungary regulates cryptocurrency activities, imposing severe penalties that could deter unauthorized trading practices. With the law’s implementation, many users and service providers are navigating an uncertain regulatory landscape without clear guidelines.
As of now, unauthorized trading can lead to prison sentences of up to two years based on transaction values, highlighting the strict approach Hungary is taking towards cryptocurrency regulation. (Source)
