The new rules, which came into effect on July 1, sent shockwaves through the fintech sector, with industry players warning of a potential mass exodus and legal chaos for investors.
Up to eight years in prison—now the price of trading crypto on unlicensed exchanges in Hungary, where new laws have criminalized unauthorized activity and forced major fintechs to freeze services for millions
Under the new law, anyone caught trading cryptocurrencies on unlicensed platforms could face up to two years in prison. The penalties increase with the size of the transaction, up to three years for trades exceeding HUF 50 million (about $140,000), and up to five years if the value is over HUF 500 million.
Hungary’s updated Criminal Code now defines two new offenses: “abuse of crypto assets” and “providing unauthorized crypto asset exchange services.”
“There’s a real risk that regular users could be prosecuted simply for managing their investments the same way they always have,” said a Telex source. “The law took effect before any compliance guidelines were published. No one knows how to follow it.”
Local publication Telex reports that approximately 500,000 Hungarians have invested in crypto with legally declared income, but under the vague new framework, many of those users could now be criminalized for past or ongoing activity.
