Hungary Axes Harsh Crypto Laws After EU Intervention

Hungary has reversed its restrictive crypto laws, decriminalizing trading in digital assets. The move comes after the European Union launched infringement proceedings against the country for conflicting with MiCA, the EU's Markets in Crypto-Assets regulation.

The Hungarian government introduced sweeping crypto restrictions on December 27, 2025, under former Prime Minister Viktor Orban. The rules required a compliance certificate from a licensed validator for every single crypto transaction, carrying prison sentences of up to eight years for service providers and five years for individual users caught conducting unauthorized transactions.

The policy reversal came in response to the EU's infringement proceedings, with government spokeswoman Anita Kobol confirming that the move aims to align Hungary's regulations with MiCA. The removal of criminal penalties is expected to bring liquidity back to the Hungarian crypto market, with platforms like Revolut potentially re-entering the scene.

While decriminalizing trading is a significant step, establishing a clear and stable regulatory environment remains a challenge for the country. Hungary still needs to create rules that comply with MiCA while providing enough clarity for service providers to operate confidently.