Hungary to decriminalize crypto trading after EU probe

Hungary will decriminalize crypto trading and unwind 2025 rules that criminalized certain crypto-to-fiat and crypto-to-crypto conversions, Tisza government spokesperson Anita Köböl told a Thursday press conference.

The 2025 amendments to the Criminal Code and the Crypto Act required a compliance certificate from an authorized crypto conversion validation service provider for conversions from July 1, 2025. Transactions without the certificate were classified as “unauthorised crypto-transactions,” treated as legally ineffective and exposed participants to criminal prosecution.

Under the amended law, penalties depended on transaction size: exchanges of crypto valued between 5 million and 50 million forints (about $16,000 to $160,000) carried up to two years in prison; 50 million to 500 million forints up to five years; and amounts above 500 million forints up to eight years.

The framework created the role of crypto conversion validation service providers, to be authorized by Hungary’s Supervisory Authority of Regulated Activities. Providers were required to verify asset origin, identify wallet or device ownership, assess user profiles and compare transactions with external databases before issuing compliance certificates.

Köböl told reporters:

This was an unnecessary piece of legislation. It made practical operation impossible and frightened the market participants. The criminal consequences also negatively impacted several hundred thousand people.

She added that several digital asset platforms, including Revolut, suspended crypto services in Hungary. Köböl noted the regulations prompted an inquiry by European Union authorities into whether the measures complied with bloc rules.

The announcement follows Hungary’s April 12 parliamentary election, which ended the 16-year rule of Prime Minister Viktor Orbán and brought the pro-European Tisza Party into government. Officials described the crypto reversal as part of efforts to ease tensions with EU institutions.

The government has not published a timeline to formally repeal the legal provisions or to set detailed replacement rules. It is unclear how markets and service providers will respond as the changes are implemented.

Previously, we reported that the EU proposed a ban on transactions at 11 crypto platforms in its 21st sanctions package, targeting firms accused of helping Russia evade Ukraine-related restrictions.