Cryptocurrency dealers and issuers in Hungary may face imprisonment for violating regulations
In a significant move to regulate the cryptocurrency market, Hungary has introduced new criminal offenses for activities related to crypto assets outside of authorized platforms. As of July 2025, the use or operation of an "unauthorized crypto-asset exchange service" is now considered a criminal offense under the updated Hungarian Criminal Code [2][3].
The penalties for individuals and service providers engaging in unauthorized crypto trading are steep. For transactions between 5 million and 50 million forints (approximately $14,600 to $145,950), individuals could face up to two years in prison, while service providers could be sentenced to up to three years [1][2]. Trades between 50 million and 500 million forints ($145,950 to $1.46 million) could result in up to three years in prison for users and up to five years for providers [1][2]. For amounts exceeding 500 million forints, the penalty can be up to five years for individuals and up to eight years for service providers [1][2].
The revised laws in Hungary have defined specific thresholds for determining sentencing, providing a clear framework for potential penalties. However, the Hungarian Supervisory Authority for Regulatory Affairs (SZTFH) has yet to release detailed guidelines for compliance, leaving businesses operating in the crypto space in limbo [3].
This lack of clear instruction has caused uncertainty for crypto firms serving Hungarian users, with some considering leaving the country due to the perceived overly restrictive environment compared to other EU member states [2][5].
In the absence of official guidelines, individuals and businesses are advised to avoid unauthorized platforms to avoid legal consequences. Staying informed about any developments or clarifications from the Hungarian authorities regarding compliance requirements is also crucial. Seeking legal advice to navigate the current regulatory landscape effectively is also recommended [4].
As Hungary continues to refine its cryptocurrency regulations, the industry awaits clear guidance from the SZTFH to ensure compliance and maintain a stable and secure market for all participants.
Sources: [1] Hungarian Criminal Code [2] Forbes [3] SZTFH (Hungarian Supervisory Authority for Regulatory Affairs) [4] Legal Advice Services [5] European Crypto Association
- In the Hungarian crypto-business landscape, the penalties for utilizing unauthorized platforms or engaging in unauthorized trading can lead to imprisonment and hefty fines, as defined by the Hungarian Criminal Code and elucidated in sources like Forbes and the Hungarian Supervisory Authority for Regulatory Affairs (SZTFH).
- To ensure compliance, maintain a secure market, and avoid legal ramifications, it's crucial for firms operating within the cryptocurrency sector in Hungary to remain informed of developments, seek legal advice, and avoid the use of unauthorized platforms, as advised by Legal Advice Services in light of the overly restrictive environment compared to other EU member states.
