By Blockchain News | Created at 2026-06-13 01:03:02 | Updated at 2026-06-13 15:41:07
1 day ago
Tony Kim Jun 12, 2026 12:56
Hungary will reverse 2025 crypto rules that imposed prison terms, marking a shift to align with EU standards and revive the local crypto market.
Hungary has announced plans to decriminalize crypto trading, reversing strict 2025 regulations that subjected traders to potential prison terms. Anita Köböl, a spokesperson for the newly elected government, confirmed during a June 11 press conference that the Orbán-era rules would be scrapped to address market disruption and align with European Union standards.
The 2025 legislation, known as the Crypto Act, mandated that all crypto-to-fiat and crypto-to-crypto conversions be validated by licensed service providers. Transactions without proper certification were classified as criminal offenses. Depending on transaction size, penalties ranged from two to eight years in prison. These measures triggered widespread platform suspensions, including by Revolut, and prompted an EU investigation into whether the rules violated the bloc’s Markets in Crypto-Assets (MiCA) regulation.
"This was an unnecessary piece of legislation. It made practical operation impossible and frightened the market participants," Köböl stated. According to Cointelegraph, she indicated the reversal was essential to restore confidence among Hungary’s estimated hundreds of thousands of crypto users.
EU Pressure and Market Fallout
The European Commission formally raised concerns in January 2026, criticizing Hungary’s 2025 rules for creating a separate compliance system that conflicted with MiCA. The crackdown also led to a sharp decline in local crypto activity, with several platforms halting operations due to the burdensome regulatory framework.
Under the 2025 system, crypto conversion validation providers were required to verify transaction origins, wallet ownership, and user profiles against external databases before issuing compliance certificates. This process stifled both institutional and retail participation, creating a chilling effect on the market.
The new government, led by Peter Magyar’s pro-European Tisza Party, has signaled its intent to repair relations with the EU. Decriminalizing crypto trading is viewed as a key step in harmonizing Hungary’s regulations with MiCA, which favors a licensing and supervision approach over criminal enforcement.
Market Implications
This regulatory pivot could revive Hungary’s crypto market, particularly as global crypto prices remain strong. Bitcoin (BTC), for instance, is trading at $63,436 as of June 12, 2026, up 0.91% in the last 24 hours, with a total market cap of $1.25 trillion. Removing legal threats in Hungary could encourage platforms to resume services and attract both domestic and international participants.
By eliminating criminal penalties and focusing on compliance through licensing, Hungary joins a broader European shift toward standardizing crypto regulations under MiCA. For traders and businesses, this could mean a more predictable environment with fewer operational risks.
Looking Ahead
The proposed changes follow Hungary’s April 2026 elections, which ended Viktor Orbán’s 16-year leadership. With the new government prioritizing alignment with EU policies, the crypto market is likely to see further regulatory adjustments in the coming months. Market participants should watch for details of the revised framework and its implementation timeline, expected to be finalized later this year.
For now, Hungary’s move to decriminalize crypto trading signals a clear intention to re-enter the European crypto market on more favorable terms, potentially unlocking significant trading and investment opportunities in the region.
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