Hungary to Scrap Crypto Prison Penalties After 2025 Crackdown

Hungary plans to remove prison penalties tied to cryptocurrency trading, reversing restrictions introduced in 2025 that led to a sharp drop in activity and prompted platforms including Revolut to suspend services, government spokeswoman Anita Kobol said Thursday.

The measures imposed criminal liability on certain crypto transactions and service providers. Kobol told reporters the rules required a compliance certificate from a licensed local validator for every crypto-to-fiat and crypto-to-crypto exchange. Transactions completed without that certificate were legally invalid.

A Forbes report published after the law took effect detailed the penalties. Individuals faced up to two years in prison for unauthorized crypto transactions. Larger amounts carried longer terms: three years for transactions exceeding 50 million Hungarian forints, about $140,000, and five years for those above 500 million forints, roughly $1.4 million.

Service providers also faced criminal exposure. Operators that failed to secure approval under the validation regime risked prison sentences of up to three years. Businesses handling particularly large crypto volumes could face up to eight years, according to the Forbes report.