In Hungary, the government is preparing to decriminalize cryptocurrency trading. At the press conference held on Thursday, Tisza government spokesperson Anita Köböl announced that the regulations that came into force last year and stipulated criminal sanctions for certain crypto-to-fiat or crypto-to-crypto conversions will be withdrawn.
Rule change message from the government
Köböl said that these regulations caused a serious contraction in the market and weakened crypto transaction activities in the country. In his statement, he stated that this legislation is unnecessary, makes it almost impossible to operate in practice and makes market participants uneasy.
“This was an unnecessary regulation. It made practical operation impossible and frightened market participants. The criminal consequences also negatively affected hundreds of thousands of people.”
The Tisza Party stands out as the political structure that came to power in Hungary after the last parliamentary elections and follows a more harmonious line in relations with the European Union. The government’s latest step also marks a significant change in direction in the crypto policy, which had become harsher in the previous period.
How did the 2025 regulation work?
The framework, which was planned to be withdrawn, came into force with a package adopted in 2025 that amended the Hungarian Criminal Code and the Crypto Code of 2024. As of July 1, 2025, cryptoasset conversions are only allowed with a certificate of conformity issued by an authorized verification service provider.
Transactions that did not have this certificate were considered “unauthorized crypto transactions”. In such cases, linked asset transfers were considered invalid and did not produce legal consequences. The system also created a new structure that must obtain permission from the Hungarian Regulated Activities Supervisory Authority in order to operate.
Mini dictionary: A certificate of compliance is the official confirmation that a crypto conversion complies with applicable rules. The verification service providers mentioned in the news are the structures that are obliged to give this approval by examining the source of the transaction, wallet ownership and user information.
These service providers were required to examine the source of crypto assets, detect wallet or device ownership, evaluate user profiles, and compare transactions with external databases. The certificate could only be issued after these checks.
Prison sentences and market impact
Under the rules, individuals or organizations who made crypto transactions between 5 million and 50 million Hungarian forints through an unauthorized platform could face up to two years in prison. This period was up to five years for transactions between 50 million and 500 million forints, and up to eight years for transactions over 500 million forints.
| Transaction amount | Anticipated punishment |
|---|---|
| 5 million to 50 million forints | up to 2 years imprisonment |
| 50 million to 500 million forints | up to 5 years imprisonment |
| over 500 million forints | up to 8 years imprisonment |
Köböl said that these regulations affect not only individual users but also digital asset platforms. Accordingly, some platforms, including Revolut, have stopped their crypto services in the country. It was also reported that an investigation has been launched at the European Union level to determine whether the restrictions imposed by Hungary are compatible with the union rules.
Government spokesperson Anita Köböl stated that the regulations narrowed the market, caused platforms to suspend their services, and created a legal harmonization debate in the European Union.
The planned step back follows parliamentary elections on April 12, which ended Viktor Orban’s 16-year rule. It is considered that the new administration aims to both reduce the pressure on the domestic market and ease the tensions with the European Union.
