Hungary to decriminalize crypto trading

TLDR

Hungarys new government plans to scrap Orban-era criminal penalties on crypto trading and replace them with a standard EU-style licensing regime.

1. Hungary will abolish rules that made many crypto transactions criminal offenses, including prison terms of up to 8 years for some unlicensed activity.
2. The change should reduce legal risk for Hungarian retail users and make it easier for exchanges like Revolut to operate again, but licensing and AML rules will still apply.
3. The reforms must still move through parliament, and details on taxes, licensing timelines, and full MiCA alignment will decide how attractive Hungary becomes for crypto businesses.

Deep Dive

1. What Hungary Is Actually Changing

Under Viktor Orban, Hungary passed a 2024 Crypto Act and a 2025 decree that effectively criminalized most unlicensed crypto trading, requiring a special validation certificate for many transactions and voiding uncertified trades, with jail terms of up to 8 years for some providers and multi year sentences for individuals at certain volume thresholds.

The new Tisza government, which took power after the April 2026 elections, has announced it will fully decriminalize crypto trading and dismantle this framework, abolishing the validation certificate requirement and removing all jail terms tied to normal market activity, according to multiple reports including a detailed summary of the prior regime and its reversal from a recent policy recap.

Officials described the old rules as politically driven and unworkable, noting they drove down domestic volumes and scared off service providers.

2. Why This Matters For Users And Platforms

For Hungarian retail users, the biggest change is legal risk: trading on compliant platforms should no longer carry the threat of criminal prosecution, as the country shifts to a licensing and supervision approach instead of criminal law.

Reports note that Orban-era rules had already pushed firms like Revolut to suspend crypto services in Hungary and sharply reduced domestic trading activity; by removing criminal penalties and heavy certification requirements, the government aims to let such platforms return under clearer licensing rules aligned with EU MiCA.

Anti money laundering checks, KYC, and potential taxation of gains are expected to remain, so this is not a free for all regime, but a move from punitive treatment to standard financial regulation.

3. What To Watch Next

The announcement outlines political intent, but the exact impact depends on the legislative text that will go through parliament and how fast it is implemented.

Key open questions include how closely Hungary will track the EUs MiCA rulebook, how crypto income and trading gains will be taxed, and what capital and compliance burdens will be imposed on local startups versus big international exchanges.

Until the new laws and implementing decrees are in force, service providers will likely move cautiously, so the real test will be whether volumes and the number of licensed platforms pick up in the months after the rules take effect.

Conclusion

Hungarys pivot from criminalizing crypto trading to an EU style licensing model is a clear positive for legal certainty and market participation, especially after several years of deterrent rules. If parliament enacts a genuinely MiCA aligned framework without excessive domestic add ons, Hungary could shift from being a hostile environment for exchanges to a reasonably competitive hub in Central and Eastern Europe, but that outcome depends on the fine print and execution.