'Short-Term Contraction' Expected as Hungary Adds Crypto Trading to Criminal Code
Hungary's updated cryptocurrency laws impose severe penalties for unlicensed exchanges, including up to five years in prison for investors trading over $1.45 million and up to eight years for service providers. The laws aim to enhance legal certainty and transparency while targeting illegal operations. Revolut has halted crypto services in Hungary due to these changes. The final implementation decree is pending, raising concerns about potential stricter regulations that could negatively impact the domestic market. The laws do not prohibit cryptocurrency trading but focus on unauthorized service provision. Transfers below $14,250 remain unaffected. Clarity on licensing and definitions of service providers is crucial for market stability. Licensed EU exchanges will be able to operate in Hungary under the MiCA Regulation by 2026.
