Hungary has moved to reverse criminal penalties tied to cryptocurrency trading introduced under former Prime Minister in 2025.
According to a Bloomberg report, Hungarian authorities are progressing with plans to ease regulations introduced last year as part of a broader crackdown on digital asset activity. Under the existing framework, certain crypto-to-fiat and crypto-to-crypto conversions were required to undergo approved validation procedures, and non-compliance could result in criminal prosecution. The rules were widely viewed as among the strictest crypto-related measures within the EU.
The proposed reversal would remove those criminal provisions, effectively decriminalising trading activities that had previously fallen within their scope. Full details of the revised regulatory framework have not yet been published by authorities.
Regulatory context and industry implications
The policy shift arrives as the EU continues the phased implementation of its Markets in Crypto-Assets (MiCA) regulation, which establishes a unified supervisory structure for digital asset businesses across member states. Hungary's move could be interpreted as an effort to align more closely with the direction of EU-wide digital asset governance.
Should the proposal be adopted, market participants operating in Hungary (including crypto exchanges, blockchain startups, and fintech firms) would see a significant reduction in legal exposure. Industry observers suggest the change could also improve Hungary's ability to attract digital asset businesses in search of regulatory clarity within the EU.
The reversal is notable given Hungary's position as an EU member state that had taken a markedly stricter approach than many peers. While it does not yet constitute a comprehensive regulatory overhaul, the removal of criminal penalties would represent a material change in the legal environment for the digital asset sector.
EU-level crypto developments
Separately, EU policymakers are considering a new sanctions package targeting Russia that would allow member states to impose broader restrictions on certain crypto-related services, with the stated aim of preventing digital assets from being used to circumvent existing financial measures. The proposal remains subject to unanimous approval by all 27 EU member states before it can take effect.
Taken together, the two developments reflect a broader pattern across Europe, in which national governments are moving away from punitive enforcement approaches towards compliance- and supervision-focused frameworks, while EU institutions maintain focus on sanctions integrity and financial stability considerations. For Hungary, the proposed change marks a clear departure from the regulatory stance adopted in 2025.
