🎉 Hungary🇭🇺: Government pledges to roll back cryptocurrency trading restrictions

🎉 Hungary🇭🇺: Government pledges to roll back cryptocurrency trading restrictions

Hungary’s new government has pledged to ease strict cryptocurrency trading regulations that required additional authorization for crypto-to-fiat conversions and exposed both users and service providers to potential criminal penalties. The policy shift comes after parliamentary elections that brought an end to Viktor Orbán’s 16-year tenure in power.

➡️ The restrictions were introduced in 2025 through a legislative package that amended Hungary’s Criminal Code and Act VII of 2024, which governs the country’s cryptocurrency market.

➡️ As part of the regulatory framework, lawmakers created a new category of entity known as a conversion verification service provider. These providers were required to obtain authorization from the financial supervisory authority and were tasked with verifying the origin of crypto assets, identifying the owner of a wallet or device, and assessing user risk profiles.

➡️ Under the legislation, individuals and companies that exchanged cryptocurrencies worth between USD 16,000 and USD 160,000 through unauthorized platforms could face prison sentences of up to two years. Transactions involving larger amounts carried penalties of up to eight years in prison.

➡️ In addition, crypto conversions could only be completed with a certificate of compliance issued by an authorized verification service provider. Transactions conducted without such certification were classified as “unauthorized transactions,” while related asset transfers could be deemed null, void, and without legal effect.

➡️ Regulators later acknowledged that the legislation had raised serious concerns among market participants and created a significant administrative burden. As a result, the European Union launched an investigation to assess whether Hungary’s crypto restrictions were compatible with EU law.

➡️ Several platforms, including Revolut🇬🇧🇱🇹, were forced to suspend cryptocurrency services in the country.

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