Unauthorized crypto trading now carries 2 years of prison in Hungary

Hungary has passed laws that could slap individuals trading crypto using an unauthorized crypto exchange with prison. Those who use a so-called “unauthorized crypto-asset exchange service” could face up to two years in prison with penalties increasing based on the value traded , according to an update to the country’s Criminal Code that came into force on July 1. The updated laws also target unauthorized crypto service providers with up to three years in prison, which could increase depending on the value of illicit trades. Local news outlet Telex reported on July 1 that the laws have confused crypto companies serving the country, as Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has 60 days to develop compliance frameworks for the laws, but no guidance exists in the meantime. The first update to Hungary’s Criminal Code gives a penalty of up to two years in prison if an unauthorized crypto exchange is used to trade between 5000000 to 50000000 forints ($14,600 to $145,950). That penalty rises to up to three years if the offence is of “a particularly large value” between 50000000 and 500000000 forints ($145,950 to $1.46 million). Offences over 500000000 forints can carry a penalty of up to five years. The second updated law around crypto gives up to three years in prison for those who provide unauthorized “crypto-asset exchange service activities” of up to 50000000 forints ($145,950). Related: Malta regulator: No MiCA licenses at risk after EU review The penalty increases are similar to the unauthorized exchange use laws, with crypto service providers hit with up to five years in prison for offences up to 500000000 forints ($1.46 million) and up to eight years in prison for offences over 500000000 forints. Earlier this month, local outlet Portfolio reported that the UK-based fintech company Revolut pulled its services in Hungary over the laws. A section of Revolut’s Hungarian site said it had stopped all crypto-related services in the country — including withdrawals from the platform — due to “recently introduced Hungarian legislation,” and did not have a timeline for when it would reinstate the services. However, Portfolio reported on Monday that Revolut had again allowed crypto withdrawals only. Revolut also said its EU arm is working on gaining a crypto license within the EU. Magazine: Move to Portugal to become a crypto digital nomad — Everybody else is [Telex]