Hungary Tightens Cryptocurrency Regulations to the World's Strictest, Citizens May Face Criminal Prosecution for Digital Asset Transactions
On July 14, Forbes reported that Hungary has officially issued cryptocurrency regulations considered the world's strictest, effective from July 1. This move has forced many large fintech companies to temporarily suspend cryptocurrency-related services in the country, raising concerns about potential criminal prosecution for hundreds of thousands of citizens using digital assets.
Immediately after the new regulations took effect, Revolut, a digital bank based in London serving over 2 million users in Hungary, announced the suspension of all cryptocurrency services from July 12, with no specified resumption date. In their announcement, Revolut stated they are "working hard to restore services" but have not provided a specific timeline. The suspension includes all new cryptocurrency purchases, Staking, and crypto-related deposits. However, users can still sell existing holdings and withdraw Tokens to external wallets. Other banking services from Revolut remain unaffected.
The most notable aspect of Hungary's new regulations is the addition of two criminal offenses related to digital assets: "cryptocurrency asset abuse" and "unauthorized cryptocurrency transaction service provision". According to the modified Criminal Code, individuals conducting cryptocurrency transactions through unauthorized platforms in Hungary may face up to 2 years in prison. If the transaction amount exceeds 50 million Hungarian forints (approximately $140,000), the sentence could increase to 3 years. For amounts over 500 million forints (equivalent to $1.4 million), violators may be sentenced to up to 5 years in prison.
