Individuals linked with trading crypto in Hungary are to be put behind bars according to the updated penal code. In a recent update to its criminal code, Hungarian traders using unauthorized crypto exchanges for trading will face up to two years in prison, with penalties varying according to the traded value. The new rule, which took effect from July 1, also targets unauthorized crypto service providers with up to three years in prison, and may vary based on the amount of illicit trades made.
According to local news outlet Telex, “Cryptocurrencies can be divided into three categories based on size: a ‘basic’ transaction of up to 50 million forints, a particularly large transaction of 50-500 million forints, and a particularly significant transaction of over 500 million forints. According to the amendment to the Criminal Code, anyone who uses an unauthorized crypto asset conversion service is punishable by up to two years in prison. If the conversion is for a particularly large value, the prison sentence can be up to three years, and if it is for a particularly significant value, it can be imprisonment for one to five years. This is the private investor site.”
On the service provider’s end, if an entity provides a crypto asset exchange service without a license or notification, or in other words, violates regulations, they risk up to 8 years in prison, depending on the value. According to the words in the writing, “Without permission”, “without notification”, “unauthorized”, the entity is liable to face up to 8 years of imprisonment.
This gives the impression that crypto could be bought and sold based on concession, under the control of the Supervisory Authority for Regulated Activities (SZTFH). However, the absence of regulation by the president of the office has put 500,000 Hungarians owning digital assets in a spot of bother.
