Hungary to scrap crypto trading penalties after 2025 crackdown
Hungary has moved to remove prison penalties tied to cryptocurrency trading after restrictions introduced in 2025 led to a slump in trading activity and prompted several platforms to scale back services in the country.
- Hungary plans to remove criminal penalties tied to cryptocurrency trading after restrictions introduced in 2025 disrupted the local market.
- Rules requiring validation certificates for crypto transactions prompted platforms including Revolut to suspend services in the country.
- The government is reversing the measures as the European Union examines whether the restrictions complied with bloc regulations.
Government spokeswoman Anita Kobol told reporters on Thursday that Hungary plans to reverse measures adopted under former Prime Minister Viktor Orbán’s administration, which imposed criminal liability on certain crypto-related transactions and service providers.
The restrictions required approved validation for transactions converting cryptocurrency into traditional currency and for crypto-to-crypto exchanges.
According to Kobol, the European Union has opened an investigation into whether those rules complied with bloc regulations.
The rollback follows Hungary’s April 2026 parliamentary election, which brought the pro-European Tisza Party to power. Subsequently, newly appointed Minister of Innovation and Technology Zoltán Tanács described the previous framework as “excessive and politically driven.”
Rules that reshaped Hungary’s crypto market
Legislation introduced in 2025 created two offenses around abuse of crypto assets by users and the provision of unauthorized crypto asset exchange services by operators.
Under the framework, every crypto-to-fiat and crypto-to-crypto transaction required a compliance certificate from a licensed local validator. Transactions completed without that certificate were considered legally invalid.
A Forbes report published after the law took effect said individuals could face up to two years in prison for unauthorized crypto transactions, with penalties rising for larger transaction sizes.
Transactions exceeding 50 million Hungarian forints, approximately $140,000, carried prison terms of up to three years, while transactions above 500 million forints, about $1.4 million, carried penalties of up to five years.
Service providers also faced criminal exposure. According to the Forbes report, operators that failed to secure approval under Hungary’s validation regime risked prison sentences of up to three years, while businesses handling particularly large crypto volumes could face penalties of up to eight years.
Industry participants warned that the measures created uncertainty for both users and companies. Local estimates cited by Forbes suggested roughly 500,000 Hungarians were involved in cryptocurrency activities when the legislation was introduced.
Market participants responded quickly after the rules came into force. Revolut suspended cryptocurrency services in Hungary, while other digital asset firms reportedly explored relocating operations to jurisdictions such as Estonia and Lithuania. Trading volumes for digital assets also declined following implementation of the restrictions.
With the criminal provisions now set to be removed, the government is seeking to bring Hungary’s approach closer to the European Union’s Markets in Crypto-Assets framework.
This is a developing story.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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