Crypto Traders and Providers Risk Jail in Hungary for Violations

Hungary has introduced strict new rules targeting individuals and businesses involved in crypto trading outside of regulated platforms. Under changes to the country’s Criminal Code that took effect on July 1, both users and operators of unauthorized crypto exchanges could face prison time, with penalties increasing based on the value of the transactions.

Good to know

• Individuals using unauthorized crypto exchanges in Hungary now risk up to 2 years in prison.
• Operating an unlicensed crypto service can lead to up to 8 years behind bars, depending on transaction volume.
• No official compliance guidance has been issued yet, creating confusion among crypto companies.

Hungary’s updated Criminal Code introduces the offense of using or operating an “unauthorized crypto-asset exchange service.” Individuals who trade crypto through such platforms could face up to two years in prison for transactions between 5 million and 50 million forints (roughly $14,600 to $145,950).

Penalties rise with the amount involved. Trades over 50 million forints but under 500 million forints ($1.46 million) could result in up to three years in prison. Offenses involving over 500 million forints carry a maximum penalty of five years.

Crypto service providers operating without proper authorization face even harsher consequences. Unlicensed operators handling less than 50 million forints could be jailed for up to three years. That sentence climbs to five years for activity under 500 million forints and up to eight years for larger-scale violations.

Industry waits for clarity amid regulatory silence

While the rules are now officially law, Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has yet to issue any clear guidelines for compliance. Under the current timeline, the regulator has 60 days to finalize the framework—but for now, businesses operating in the crypto space are left in limbo.

According to Telex, a local media outlet, crypto firms serving Hungarian users are already uncertain about how to proceed, given the lack of clear instruction.

The country’s new approach is a big shift toward enforcement, even before regulatory processes are fully in place. Without immediate guidance, both domestic and foreign platforms could risk violating the law unknowingly.

Offenses categorized by transaction size

Hungary’s revised laws define specific thresholds for determining sentencing:

1. 5M–50M HUF ($14,600–$145,950): Up to 2 years for users, 3 years for providers
2. 50M–500M HUF ($145,950–$1.46M): Up to 3 years for users, 5 years for providers
3. Over 500M HUF ($1.46M+): Up to 5 years for users, 8 years for providers