Hungary's Crypto Crackdown: Traders and Platforms Brace for Impact

New Law Sends Shockwaves Through Hungary's Crypto Scene

Hungary's crypto world is reeling from a new law that's putting everyday traders and platforms on the edge, forcing many service providers to pack up and leave.

The Hungarian government just dropped a bombshell: a law that criminalizes crypto operations. It's targeting two major no-nos: the "abuse of crypto assets" by traders and the provision of "unauthorized crypto asset exchange services" by service providers.

If you're caught messing with crypto in Hungary, you could be looking at up to two years in the slammer for basic transactions. But if you're dealing with big bucks, watch out! Trades over 50 million Hungarian forints, about $140,000, could mean three years behind bars. And if you're handling over 500 million forints ($1.4 million), you might be facing a five-year sentence.

But it's not just traders feeling the heat. Platforms that haven't been vetted and approved under the country's new validation regime could be operating in the region for up to three years in prison. If they're processing "particularly large" volumes of crypto, the penalty skyrockets to eight years.

Hungary's now demanding that all crypto exchanges go through a state-controlled validation process. We're talking strict checks on the origin of funds, wallet ownership, identity verification, and profiling. Without this official stamp of approval, any conversion of crypto into fiat or other assets is considered illegal.

This new legislation, which kicked in on July 1, 2025, has left both traders and service providers in a total limbo. They've got three options: halt operations, relocate, or risk prosecution. The government's given regulatory authorities a 60-day window to spell out the specifics, but that's cold comfort when there's still no public guidance, no compliance playbook, and no list of approved platforms.

Hungarian crypto industry figures are calling this move a total disaster for the local scene, with some service providers already plotting their exit. Revolut, one of Hungary's most popular service providers, suspended all crypto services in the country last week, and there's no clear timeline for when they might be back. Other firms are expected to follow suit, with several already scoping out more crypto-friendly EU countries like Estonia or Lithuania.

Local data suggests that around 500,000 Hungarians have been involved in crypto operations and are now in the crosshairs of this new legislation.

It's still up in the air how these updated regulations will affect global service providers like Binance, Coinbase, and Kraken, which operate in Hungary. None of these firms have announced any changes to their services based on the new rules, and broader reports are saying that a direct impact on them is "unlikely."