Hungary to Scrap Crypto Penalties After 2025 Trading Crackdown

Highlights:

• Hungary plans to remove crypto penalties tied to disputed trading rules.
• The 2025 validation system pushed platforms to restrict local crypto services.
• Officials say the reset will align Hungary more closely with MiCA.

Hungary plans to remove criminal liability from cryptocurrency trading after months of disruption. According to a Bloomberg report, the proposal reverses rules introduced last year under Viktor Orbán. Those rules required approved validation for crypto-to-fiat and crypto-to-crypto swaps. They also exposed users and service providers to prison terms.

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Government spokesperson Anita Köböl said on Monday that the cabinet will dismantle the validation certificate system. Therefore, traders would no longer face criminal charges for using unauthorized venues. Officials also want the local market to follow the MiCA rulebook. The move marks another break from policies adopted before Hungary’s April election.

Another country is softening its stance on crypto.

🇭🇺 Hungary plans to remove criminal penalties introduced under its stricter digital asset framework. 🚀 pic.twitter.com/g1Y3jE9Jfp

— The Moon Show (@TheMoonShow) June 11, 2026

Crypto Penalties Move Away From Prison Risk

The previous framework created a new approval layer for digital asset conversions. Every covered transaction needed a compliance certificate from a licensed local validator. Without that certificate, the transfer carried no legal effect under Hungary’s crypto market rules. As a result, ordinary trading faced unusual legal uncertainty.

The extent of the penalties was based on the size of the transactions. Individuals using unauthorized exchange services faced up to two years in prison for mid-sized transfers. Five-year terms could be considered for larger transactions. Meanwhile, unlicensed providers faced reported sentences reaching eight years.

The rules also affected international platforms. Revolut informed Hungarian clients it would close crypto accounts after a wind-down period. Revolut, however, was able to resume staking services on tokens like Ethereum and Solana later in July. As a result, many users faced fewer options for buying or selling digital assets. 

EU Pressure Adds Momentum to Reversal

The European Commission raised concerns about Hungary’s crypto validation regime earlier this year. The Commission questioned whether national rules aligned with MiCA, the bloc’s common crypto framework. MiCA gives service providers one regulatory path across member states. Therefore, extra national barriers can create conflict when they disrupt cross-border services.

🇪🇺European Commission calls on 12 countries to implement crypto tax rules.

The commission also singled out Hungary for failing to comply with the EU's MiCA framework after an amendment to a local law. pic.twitter.com/0aF35Zts1O

— Skipper | XRPL (@skipper_xrp) January 30, 2026

Legal observers said Hungary’s validation rules went beyond standard MiCA obligations. In addition, market participants warned that the system created uncertainty for customers and providers. Some companies reduced crypto activity in Hungary after the rules took hold. The Commission then opened infringement proceedings tied to exchange validation.

Budapest now wants to remove the most controversial parts of that system. Officials have not released the full revised bill. However, the direction points toward a lighter approach focused on EU alignment.

New Government Signals Market Friendly Reset

The crypto penalties shift follows Hungary’s parliamentary election in April this year. Péter Magyar’s Tisza Party defeated Orbán’s Fidesz bloc and ended 16 years of Orbán-led rule. Since then, the new government has moved to unwind several disputed measures, with crypto regulation now joining that reform list.

Zoltán Tanács, Hungary’s Minister of Science and Technology, described the earlier rules as politically driven. His comments reinforced the message that crypto markets need clear rules, not criminal overreach. Meanwhile, Köböl said the restrictions hurt hundreds of thousands of people. She also linked the crackdown to lower domestic activity.

The planned reversal could reopen Hungary’s digital asset market for exchanges, fintech firms, and startups. It may also reduce legal risk for users who trade through common platforms. However, Hungary still needs detailed rules for licensing and anti-money laundering checks.

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