Hungary Introduces Strict Laws Against Unauthorized Crypto Trading

• Hungary has approved laws criminalizing unauthorized crypto trading.
• Trading on unauthorized crypto exchanges can lead to up to two years in prison.
• Unauthorized service providers could face penalties up to eight years in prison for considerable amounts.
• Revolut briefly halted, then reintroduced crypto services in Hungary amidst these changes.
• Local authorities still working on regulatory frameworks for crypto amidst confusion.

Hungary Enforces Strict Penalties for Unauthorized Crypto Trading

Hungary has introduced some serious laws regarding the unauthorized use of crypto trading – and yes, that means trading using an unapproved exchange. The law, which hit its first day of enforcement on July 1, specifies potential imprisonment of up to two years for individuals who are found using these so-called “unauthorized crypto-asset exchanges.” This change to the Criminal Code certainly has raised eyebrows, especially among crypto companies that already operate in Hungary. It seems they’re left in a lurch as local regulators scramble to figure out compliant frameworks while still lacking clear guidance.

The Law Targets Cryptocurrencies with Heavy Penalties

Under the newly hashed out law, the fines and penalties don’t just stop at a mere two years. For individuals trading between 5 million to 50 million forints, which translates to around $14,600 to $145,950, penalties can soar. If someone crosses into the realm of particularly large values, specifically between 50 million to 500 million forints, the prison time could rise up to three years! And just when you think it couldn’t get worse, jumping over 500 million forints can lead to a hefty five-year sentence!

Revolut’s Shaky Stance Amid Hungarian Regulations

But wait, that’s not all – there’s more for crypto service providers! They can face even longer sentences for offering unauthorized exchange activities: up to three years for values under 50 million forints. The penalties get intensified from there — a maximum of five years for offenses going up to 500 million forints and possibly eight years for even pricier infractions. Talk about stacking up the pressure! Just recently, Revolut, a UK-based fintech, momentarily pulled its crypto services from Hungary but then backtracked and reinstated limited withdrawals, leaving many to wonder about the future of crypto in this tight legal environment.

In summary, Hungary’s crackdown on unauthorized crypto trading carries some jaw-dropping penalties—think prison time extending to five years based on transaction values. The bill puts significant pressure not just on individual traders, but also on service providers. As companies like Revolut navigate these new waters, it’s clear the landscape for crypto is evolving quickly in Hungary, and the implications might steer the ship in uncharted directions.