Hungary Moves to Decriminalize Cryptocurrency Trading Following Orban’s Exit
Nearly two months after pivotal elections that saw Viktor Orban’s 16-year tenure conclude and signaled a clear shift toward the West, Hungary’s new government is taking steps to dismantle controversial policies of the former administration, potentially benefiting the local cryptocurrency sector.
The previous government, under Orban, introduced stringent regulations on cryptocurrency trading in 2025. These rules mandated approved validation for transactions converting digital assets to traditional currency and for crypto-to-crypto exchanges. More controversially, the regulations included the possibility of prison sentences for certain violations. At the time, a Forbes report indicated that transactions exceeding $140,000 (50 million forints) could result in up to three years imprisonment, with larger transactions over $1.4 million (500 million forints) potentially leading to five-year sentences.
These strict measures forced many popular trading platforms to either exit the country or significantly restrict services for Hungarian residents. While the European Union launched an investigation into whether these restrictions adhered to its regulations, local trading volumes had already plummeted prior to the change in administration earlier this year.
A new report from Bloomberg indicates that the current government has decided to remove the threat of jail time and criminal charges associated with using unauthorized exchanges or conducting non-compliant crypto-to-crypto and crypto-to-fiat transactions.
Anita Kobol, a government spokeswoman, stated that Hungary will abolish the requirement for transaction-level “validation certificates” and intends to align its local market with the European Union’s Markets in Crypto-Assets (MiCA) framework.
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