Hungary implements new cryptocurrency regulations, classifying certain digital asset transactions as crimes

ChainCatcher news, according to Forbes, Hungary officially implemented one of the world's strictest cryptocurrency regulations starting July 1, forcing several large fintech companies to suspend related services and potentially criminalizing the digital asset trading activities of hundreds of thousands of citizens. This significant policy change has caused widespread chaos and concern in the fintech sector.

London-based digital bank Revolut announced, "We are temporarily suspending cryptocurrency services in Hungary effective immediately until further notice." Revolut has over 2 million users in Hungary. The company stated that it is "working to restore services as soon as possible," but did not provide a specific timeline for resumption. This suspension covers all new cryptocurrency purchases, staking activities, and top-up operations; however, users can still sell existing holdings and transfer some tokens to external wallets. Other banking services from Revolut remain unaffected.

Hungary's new regulations introduce two criminal offenses: "abuse of crypto assets" and "providing unauthorized cryptocurrency exchange services." According to Hungary's recently revised code, individuals using unauthorized cryptocurrency trading services may face up to two years in prison for the underlying trading activities; if the transaction amount exceeds 50 million Hungarian forints (approximately $140,000), the prison term can be up to three years; if it exceeds 500 million forints (approximately $1.4 million), the maximum prison term can reach five years.