In Hungary, the government is preparing to decriminalize the buying and selling of cryptocurrencies. Tisza government spokesperson Anita Köböl announced at a press conference on Thursday that the regulations introduced last year—requiring official approval for converting certain cryptocurrencies to fiat or to other digital assets, complete with criminal penalties—will soon be withdrawn.
Policy U-turn from the new government
Köböl noted that the previous regulations had caused a dramatic contraction in the market and weakened crypto trading activity throughout the country. She described the legislation as unnecessary, practically impossible to implement, and a source of anxiety for market participants.
“This was an unnecessary piece of legislation. It made practical operations nearly impossible and frightened market participants. The criminal penalties negatively affected hundreds of thousands of people.”
Since Hungary’s recent parliamentary elections, the Tisza Party has come to power with a more EU-aligned agenda. The planned reversal of the crypto regulations marks a clear change in direction compared to the previous government’s hardline approach toward digital assets.
The now abandoned 2025 regulation
The rules set to be repealed were introduced as part of a legislative package in 2025, amending the Hungarian Penal Code and the 2024 Crypto Act. From July 1, 2025, crypto asset conversions would only have been legally permitted with a compliance certificate issued by an authorized verification provider.
Any crypto transactions lacking this certification were defined as “unauthorized crypto operations.” Such transfers were considered invalid, carried no legal recognition, and a new requirement was introduced: these verification providers needed a license from the Hungarian Regulated Activities Supervisory Authority in order to operate.
Glossary: A compliance certificate is an official document proving a crypto conversion complies with current laws. Verification providers are designated entities responsible for investigating the source of funds, wallet ownership, and user information before granting approval.
These providers were mandated to scrutinize the origin of crypto assets, establish device or wallet ownership, assess user profiles, and cross-reference transactions with external databases. Only following these checks could a compliance certificate be issued.
Prison terms and market consequences
The regulations meant that anyone conducting crypto transactions worth between 5 million and 50 million Hungarian forints (HUF) on an unauthorized platform faced up to two years in prison. For amounts between 50 million and 500 million HUF, the penalty was up to five years, and above 500 million HUF, as much as eight years.
| Transaction amount | Prescribed penalty |
|---|---|
| 5 million to 50 million HUF | Up to 2 years imprisonment |
| 50 million to 500 million HUF | Up to 5 years imprisonment |
| Over 500 million HUF | Up to 8 years imprisonment |
Köböl clarified that these rules did not just affect individual users but also impacted digital asset platforms. As a result, some major players, including Revolut, suspended their crypto services in Hungary. On a wider scale, the European Union began investigating whether Hungary’s restrictions conflicted with EU law.
Government spokesperson Anita Köböl stated that the regulations tightened the market, forced platforms to pause their services, and raised questions of legal compliance at the European Union level.
This policy reversal comes in the wake of the April 12 parliamentary elections, which ended Viktor Orban’s 16-year rule. The new government appears to be aiming to reduce internal pressure and tensions with the European Union by relaxing its stance on cryptocurrencies.
