Hungary Plans to Abolish Criminal Penalties for Cryptocurrency Trading, Reversing Strict Regulations

On June 11, the Hungarian government announced the cancellation of criminal penalties for cryptocurrency trading and the repeal of regulatory policies tightened during the tenure of former Prime Minister Viktor Orbán. This shift indicates a move from a 'criminalization constraint' to a more lenient compliance framework for the regulation of cryptocurrency transactions in the country. Previously, Hungary had significantly strengthened its cryptocurrency regulations last year, requiring that exchanges between cryptocurrencies and fiat currencies, as well as exchanges between cryptocurrencies, must go through an officially approved verification process; otherwise, violations could face criminal penalties, including imprisonment.