- New law targets unlicensed crypto exchange activity.
- Offenders face up to 2 years in prison.
- Law applies to both users and service providers.
Hungary has officially passed a law that criminalizes the operation and use of unauthorized cryptocurrency exchanges. Starting from July 1st, anyone involved in unlicensed crypto transactions — whether as a user or a service provider — could face up to 2 years in prison.
This new regulation marks a significant tightening of Hungary’s approach to digital assets, as the country moves in line with broader European Union crypto regulations under the MiCA framework.
Penalties for Users and Platforms Alike
The law does not only target exchange operators. Even individuals using unauthorized platforms can face the same harsh penalties. This dual-focus approach aims to discourage participation in the unregulated crypto market altogether.
The Hungarian government has made it clear: only officially registered and compliant crypto service providers will be allowed to operate within the country. Any transaction outside this legal framework will now be treated as a criminal offense.
Aligning with EU Crypto Rules
This move appears to be Hungary’s effort to stay ahead of the EU’s upcoming Markets in Crypto-Assets (MiCA) regulation, which seeks to harmonize crypto rules across member states. By criminalizing unauthorized exchanges, Hungary aims to curb financial crimes, protect investors, and increase transparency in digital finance.
Crypto users and platforms operating in or serving Hungarian customers will now need to urgently reassess compliance to avoid severe consequences. Failure to act could result not just in fines, but actual jail time.
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