Hungary is moving to dismantle the restrictive digital asset framework implemented under former leader Viktor Orbán, a policy shift that will decriminalize crypto trading and reverse rules that carried potential prison terms, government spokesperson Anita Kobol reportedly said Thursday.
The regulations required approved validation for crypto-to-fiat and crypto-to-crypto conversions and led several digital-asset platforms, including Revolut, to suspend crypto services in Hungary. The measures coincided with a decline in domestic trading activity and prompted a European Union probe into whether the restrictions complied with bloc-wide rules, according to a Bloomberg report.
Hungary's restrictive measures took effect on July 1, 2025, after parliament passed the legislation the previous month. The law criminalized the use of unlicensed exchanges and certain unauthorized high-value crypto transactions, including trades between 50 million Hungarian forints ($162,238) and 500 million forints ($1.62 million).
Under the previous code, individuals faced prison terms of up to two years or five years, depending on transaction value, while service providers could face sentences of up to eight years for operating without a central bank license.
