Hungarian cryptocurrency businesses are navigating uncertainty as they await definitive legal standards, despite a looming 60-day deadline for regulatory adherence.
Hungary is now enforcing severe sanctions on individuals and organizations participating in cryptocurrency activities or providing related services without proper authorization. The revised Hungarian Penal Code stipulates that using unauthorized digital currency exchanges can result in imprisonment for up to two years, with penalties escalating for larger-scale transactions.
Companies that offer crypto-related services without the necessary permits are subject to even more stringent repercussions. Penalties can reach a maximum of eight years’ imprisonment for transactions exceeding 500 million forints (approximately $1.46 million).
The recent legislative changes introduce fresh offenses, including ‘misuse of crypto-assets,’ reflecting an effort to exert firmer control over the digital currency market.
The rollout of these new rules has generated perplexity within the Hungarian crypto sector. The nation’s Supervisory Authority for Regulatory Affairs (SZTFH) has not yet released official guidelines for compliance. Consequently, companies are operating in a 60-day period of regulatory limbo, lacking precise instructions.
In reaction to the new laws, the UK-based financial technology company Revolut temporarily suspended crypto functionalities within Hungary. They have subsequently restored cryptocurrency withdrawal options as their EU-based arm pursues a pan-European crypto operating license.
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