Hungary Imposes Strict Jail Terms for Crypto Traders Using Unauthorized Platforms

Hungary has enacted stringent legislation criminalizing cryptocurrency trading on unauthorized platforms, with penalties ranging up to five years for traders and eight years for service providers. The law, effective from July 1, 2025, scales punishments based on transaction volumes, targeting both individual traders and exchange operators.

Traders handling between 5 million and 50 million forints ($14,600-$145,950) face up to two years imprisonment, while those exceeding 500 million forints risk five-year sentences. Unauthorized service providers face even harsher penalties, with eight-year terms for large-scale operations.

The legislation creates significant uncertainty for Hungary's crypto sector, as regulatory guidelines for compliant platforms remain undefined. The move reflects growing global tensions between cryptocurrency innovation and government oversight.