Hungary to Criminally Prosecute Unauthorized Virtual Asset Transactions

Starting this month, Hungary plans to criminally prosecute providers and users of unauthorized virtual asset (cryptocurrency) trading services.

According to Forbes on the 14th (local time), Hungary has introduced new criminal penalties for 'abuse of crypto assets' and 'providing unauthorized crypto asset exchange services.'

According to the penal code, customers trading unauthorized virtual assets may face up to 2 years in prison. In addition, if the transaction amount exceeds $140,000 or $1.4 million, offenders may be sentenced to 3 years or 5 years in prison respectively. Providers of trading services can face up to 8 years in prison.

As a result, some fintech firms have suspended their services. The London-based digital bank Revolut stated, "Until further notice, we will temporarily suspend virtual asset services in Hungary" and added, "We will work to restore the service as soon as possible." However, no timeline for the restoration was given.

Local Hungarian media also expressed concern. The local media outlet 'Telex' reported, "It is estimated that about 500,000 Hungarians have purchased virtual assets," and cautioned that "with this new regulation, citizens may find themselves at risk of criminal prosecution."