Hungary’s new government is moving to decriminalize cryptocurrency trading, reversing a strict 2025 law. The previous rules required validation for transactions and carried prison sentences for large unauthorized trades. Government spokeswoman Anita Kobol confirmed plans to lift jail threats and align the local market with the European Union’s MiCA framework.
Hungary plans to remove the threat of jail time for cryptocurrency trading in a reversal of policy from the former administration. The decision follows a pivotal election nearly two months ago that ended Viktor Orban‘s 16-year tenure.
The previous government introduced restrictive rules against crypto trading in 2025. These rules required approved validation for converting digital assets to traditional currency and for crypto-to-crypto exchanges.
Violations could lead to criminal charges, with possible prison sentences in extreme cases. A report claimed transactions over $140,000 risked up to three years in prison.
Largest transactions exceeding $1.4 million could result in a five-year prison sentence. This led numerous popular trading platforms to leave the country or restrict services for locals.
Local trading volumes plunged significantly before the administration change earlier this year. The European Union had opened an investigation into whether the restrictions complied with its regulations.
According to a new report, the government will lift criminal charges for using unauthorized exchanges. It will also decriminalize non-compliant crypto-to-crypto and crypto-to-fiat transactions.
Government spokeswoman Anita Kobol stated Hungary will dismantle the transaction-level ‘validation certificate’ requirement. Hungary plans to align the local market with the EU’s Markets in Crypto-Assets (MiCA) framework, Kobol said.
