Hungary’s Crypto Crackdown Sparks Market Uncertainty Amid Regulatory Overhaul

Hungary's amended criminal code now imposes severe penalties for unlicensed cryptocurrency activities, with prison terms of up to eight years for exchange operators and five years for large-scale traders. The move has already forced Revolut to exit the local market, though compliant exchanges remain theoretically unaffected.

Blockchain Hungary Association President Kornél Kalocsai acknowledges the law's intent to curb illegal operations while preserving legitimate business. However, vague implementation details have created a chilling effect. "This isn't about pushing out legal operators," Kalocsai notes, "but the market is reacting before seeing how enforcement will work."

The regulatory shift comes as Hungary prepares for the EU's Markets in Crypto-Assets (MiCA) framework, which will fully standardize crypto operations by 2026. Until then, domestic uncertainty prevails—particularly around the $1.45 million trading threshold that triggers criminal liability.