Hungary Ends Crypto Jail Terms: Orban’s 16-Year Rule Reversed

by

Report: Hungary Drops Criminal Penalties for Crypto After Orban’s 16-Year Rule Ends

Hungary’s new government announced this week that it will no longer treat cryptocurrency trading as a crime. They are overturning the strict rules put in place by the previous Prime Minister, Viktor Orban, which previously allowed for prison sentences of up to eight years for individuals and companies involved with crypto, Bloomberg reported.

  • Key Takeaways:

  • Bloomberg reports that Hungary’s Tisza government scraps 8-year prison terms for crypto trading, reversing Orban’s 2025 rules.
  • Revolut, forced out by Hungary’s validation law, now has a path to restore crypto services in 2026.
  • New MiCA-aligned legislation is expected in the coming weeks as Hungary drafts its replacement framework.

A Sharp Reversal After One Election

The Bloomberg report follows the April 12, 2026, parliamentary elections in which Péter Magyar’s Tisza Party (Respect and Freedom Party) secured roughly 53% of the vote and 141 of 199 parliamentary seats, a supermajority that ended Orban’s 16-year grip on power. Magyar was sworn in as prime minister in mid-May.

The crypto policy change is part of the new administration’s broader pivot toward EU alignment, institutional reform, and restoring access to frozen EU funds.

What the Orban Rules Actually Did

Hungary‘s restrictive regime was built on the 2024 Crypto Act (Act VII of 2024) and tightened through Decree 10/2025, issued by the Supervisory Authority for Regulated Activities (SARA) on October 27, 2025. The full validation framework took effect on December 27, 2025.

The rules required a mandatory “validation certificate” from a SARA-licensed validator for virtually every crypto-to-fiat and crypto-to- crypto transaction. Validators conducted enhanced due diligence beyond standard KYC checks, including verification of asset origin, wallet ownership, and associated persons.

Transactions without a valid certificate were legally void.

Criminal Penalties That Drove Out Major Platforms

The penalties scaled with transaction size:

  • Service providers and exchanges faced up to 8 years in prison for operating without proper Central Bank of Hungary (MNB) licensing.
  • Individual users faced 2 to 5 years depending on transaction value, with thresholds roughly tied to 50 to 500 million HUF (approximately $162,000 to $1.62 million).

The practical result was swift. Revolut suspended crypto services in Hungary rather than absorb the compliance and criminal liability exposure. Domestic trading volumes dropped sharply, and legal uncertainty spread across market participants.

EU infringement proceedings followed, as Hungary’s national validation system conflicted with the harmonized MiCA framework for crypto-asset service providers.

What the New Government Is Scrapping

During a press conference on June 11th, government spokesperson Anita Köböl announced that the government will repeal the existing measures. She described the previous law as unnecessary and said it hindered practical implementation and discouraged businesses.

Science and Technology Minister Zoltán Tanács had signaled the week before that criminal penalties would go, describing the rules as politically driven rather than market-protective.

Planned changes include:

  • Full abolition of the mandatory validation certificate requirement.
  • Complete decriminalization of crypto trading and related services.
  • Removal of all jail terms for users and service providers.
  • A new regulatory framework built around EU MiCA licensing standards.

What Comes Next

Platforms, including Revolut, now have a clearer path to resume crypto services in Hungary. Trading volumes and market liquidity are expected to recover as legal risk recedes.

How soon things return to normal in the market will depend on the new laws being created, including whether any existing arrangements will be protected. We expect to learn more specifics about these laws in the coming weeks and months.

The move positions Hungary to re-enter the European regulatory mainstream after operating one of the continent’s most restrictive crypto regimes through late 2025.

Read More

2026-06-11 21:27