TLDR
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Hungary moves to scrap crypto prison penalties after EU scrutiny
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Hungary reverses strict crypto rules after platforms suspended services
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New Hungary government seeks MiCA aligned crypto rules after backlash
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Hungary’s crypto rollback follows market disruption and EU pressure
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Hungary eases crypto crackdown after 2025 rules hit trading activity
Hungary is moving to reverse its crypto crackdown after EU scrutiny and a sharp market pullback. The new government plans to remove prison penalties tied to crypto trading. The shift follows complaints that the 2025 rules disrupted users, platforms, and market activity.
Hungary Moves To Reverse Crypto Restrictions
Hungary introduced the restrictive crypto framework in 2025 under the previous government. The rules covered crypto-to-fiat conversions and crypto-to-crypto exchanges. They also required approved validation before transactions could gain legal effect.
Under the framework, users needed compliance certificates from licensed validation providers. These providers checked asset origins, wallet ownership, user profiles, and transaction data. Therefore, the system placed heavy compliance burdens on users and platforms.
Hungary also attached criminal penalties to unauthorized crypto transactions. Some users faced prison terms based on transaction size. Larger transactions carried heavier penalties, while service providers also faced criminal exposure.
EU Scrutiny Adds Pressure On The New Government
The rules quickly reshaped Hungary’s crypto market after taking effect in July 2025. Several platforms reduced or suspended services because of the approval system. Revolut was among the firms that halted crypto services in the country.
Trading activity also fell after the restrictions entered force. Market participants said the rules created uncertainty for both users and companies. Some firms also considered moving operations to other European jurisdictions.
The European Union later examined whether Hungary’s approach aligned with bloc rules. That scrutiny increased pressure on the new administration. As a result, the government now wants a framework closer to the EU’s MiCA rules.
Policy Shift Follows Change In Government
Hungary’s reversal follows the April 2026 parliamentary election. The vote ended Viktor Orbán’s long rule and brought the Tisza Party into government. The new administration has since moved to reduce tensions with the European Union.
Government spokesperson Anita Köböl said the old framework harmed practical crypto operations. She also said criminal penalties affected hundreds of thousands of people. Her remarks signaled a clear break from the previous policy stance.
The rollback aims to remove prison risks from normal crypto trading. However, Hungary still plans to regulate the sector within European rules. The move marks a broader reset in the country’s digital asset policy.
The post Hungary Reverses Crypto Crackdown After EU Scrutiny appeared first on CoinCentral.
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