Trading with crypto can already be a crime: a new Hungarian law has come into effect

As of July, unauthorised cryptocurrency trading is officially a criminal offence in Hungary. As part of a larger legislative package, two new crimes have been added to the Criminal Code, strictly regulating the exchange and distribution of crypto assets. The changes could seriously affect not just service providers but even everyday users.

Law without execution

According to a detailed report by Telex, the Hungarian Parliament passed the comprehensive bill, which includes the new anti-crypto measures, in mid-June. The legislation introduces two new criminal offences: providing unauthorised crypto exchange services and using such services. Both are considered criminal activities and can result in serious prison sentences.

The main issue with the T/11922/13 bill, which was passed on June 17, 2025, is that while the law has taken effect, the details needed for its implementation—such as what specific licenses are required to legally trade crypto and how to obtain them—are still nonexistent. In other words, the law criminalises an activity that cannot currently be legally carried out.

Prison sentences of up to 8 years

Under the amendment, operating a crypto exchange service without a license can carry a prison sentence of up to eight years. But it’s not just those providing the service who face penalties—users of these services can also be prosecuted. For instance, someone who sells their Bitcoin through an unlicensed platform could be sentenced to between 2 and 5 years in prison, depending on the amount involved.

For particularly large transactions (over HUF 50 million/EUR 125,000), a 3-year sentence may be imposed; for amounts exceeding HUF 500 million (EUR 1.25 million), the sentence can reach up to 5 years.

Half a million Hungarians at legal risk

An estimated 500,000 people in Hungary own some form of crypto asset, many of whom have legally acquired it using taxed income. These individuals now find themselves in a legal grey area: while holding crypto is not forbidden, selling or exchanging it can no longer be done legally. Since no licensed Hungarian exchanges exist, practically anyone trying to convert crypto into fiat currency would be committing a criminal offence.

A clash with EU regulations

Many believe there are political motives behind the new legislation. The timing, the lack of implementation rules, and the severity of the penalties suggest that the government may be sending a political signal that “playing with crypto” is no longer welcome.

In practice, however, no one knows what’s legal and what isn’t. The Hungarian Supervisory Authority for Regulated Activities (SZTFH), which is supposed to license crypto service providers, has yet to publish any procedural guidelines. As a result, the law exists, but compliance is nearly impossible.

What comes next?

Crypto service providers—such as Hungary’s CoinCash and global platforms like Binance—are taking a wait-and-see approach. Many are hopeful that future implementation regulations will soften the harsh restrictions or at least offer a path to legal operation.

In the meantime, Hungary’s crypto sector is clouded by fear and uncertainty. The question is no longer what the future holds for crypto, but whether simply touching it risks jail time.

More crypto-related articles:

• Hungary’s business landscape: embracing the cryptocurrency revolution
• Hungarian group accused in massive cryptocurrency fraud in Mexico

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