What is changing in Hungary’s crypto regulations?

Hungary plans to reverse crypto trading restrictions introduced in 2025 that required official validation for certain cryptocurrency transactions. The rules exposed users and service providers to potential criminal penalties, including prison sentences, for non-compliant transactions.

Why is Hungary scrapping its crypto trading restrictions?

The government says the framework harmed crypto market activity, discouraged participation and created operational challenges for businesses. Officials also noted that the rules affected hundreds of thousands of users and attracted scrutiny from the European Union.

How severe were the penalties under Hungary’s crypto rules?

Individuals conducting unauthorised crypto transactions worth between 5 million and 50 million Hungarian forint (about $16,000 to $160,000) could face up to two years in prison. Penalties increased to five years for larger transactions and up to eight years for transactions exceeding 500 million forint.

Why did crypto companies oppose Hungary’s regulations?

The rules imposed significant compliance requirements and legal risks on both users and service providers. According to the government, some platforms, including Revolut, suspended crypto services in Hungary because of the regulatory environment.

How did the regulations affect Hungary’s crypto market?

Government officials said crypto trading activity declined after the rules took effect. The administration also argued that the legislation created uncertainty that discouraged participation from both retail users and businesses.

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Hungary to scrap crypto jail threat rules

Q: What did Hungary’s 2025 crypto law require?

The law required crypto-to-fiat and crypto-to-crypto transactions to receive a compliance certificate from an authorised crypto conversion validation service provider. Transactions without the required certificate were considered unauthorised and lacked legal recognition.

Written by Jon CuthbertPublished Jun 11, 2026, 11:45 PM

Hungary's government plans to reverse restrictive cryptocurrency trading rules that exposed users and service providers to potential prison sentences for transactions conducted without approved validation.

Government spokesperson Anita Köböl said the administration will unwind regulations introduced in 2025 that required compliance certificates for crypto-to-fiat and crypto-to-crypto conversions, arguing that the framework damaged market activity.

“This was an unnecessary piece of legislation. It made practical operation impossible and frightened the market participants,”

Said Hungarian government spokesperson, Anita Köböl.

Köböl said the restrictions negatively affected several hundred thousand people and contributed to a decline in cryptocurrency trading activity across the country.

The rules also prompted digital asset platforms, including Revolut, to suspend crypto services in Hungary, while drawing scrutiny from the European Union over whether the framework complied with bloc-wide regulations.

The restrictions originated from amendments to Hungary’s Criminal Code and Crypto Act that took effect on July 1, 2025, requiring crypto transactions to be validated by authorised crypto conversion validation service providers before receiving legal recognition.

Under the framework, individuals conducting unauthorised crypto transactions worth between 5 million and 50 million Hungarian forint could face up to two years in prison, with penalties rising to eight years for transactions exceeding 500 million forint.

The planned reversal follows the election victory of Peter Magyar’s pro-European Tisza Party in April, ending the 16-year rule of former Prime Minister Viktor Orban and signalling a broader effort to improve relations between Hungary and the European Union.