Hungary Criminalizes Unlicensed Crypto Exchanges With Up To 8-Year Jail Terms

Hungary, a central European nation, has implemented stringent regulations targeting unlicensed cryptocurrency exchanges. The new law criminalizes the use of unauthorized crypto exchanges, imposing severe penalties on both users and operators. This shift signifies a major change in the country's stance on digital assets and crypto trading.

Under the new legislation, using unlicensed crypto exchanges is now considered a felony. Individuals found guilty of violating this law could face up to five years in prison, while operators of these exchanges could receive even harsher penalties, with sentences reaching up to eight years. The law specifically targets high-value crypto transactions, defined as those exceeding 50 million Hungarian forints (approximately $146,000) and up to 500 million forints (approximately $1.46 million).

The recent regulatory changes have disrupted Hungary's crypto market, with some international platforms like Revolut and Bitstamp halting their services due to legal uncertainty and unclear licensing rules. Critics argue that Hungary's regulations are more stringent than the EU's Markets in Crypto-Assets (MiCA) regulation, which aims to standardize laws across member states without criminally penalizing users.

Hungarian authorities have not yet announced a timeline for establishing the licensing rules. Consequently, the future of crypto in the country remains uncertain until the law is fully implemented. The government of Thailand has also taken steps to block unregulated foreign crypto platforms and combat online financial crime. These changes focus on eliminating illegal peer-to-peer (P2P) crypto platforms and ensuring compliance with digital asset business regulations.

Foreign platforms operating in Thailand without a license face severe penalties, including up to three years in jail and fines of up to 300,000 baht (approximately $8,700). Offenders may also face both penalties. The Thai Securities and Exchange Commission (SEC) will have the authority to halt suspicious transactions, freeze assets, and require crypto service providers to report scam activity. These measures are part of a collaborative effort with other digital agencies to enhance security.

Despite the crackdowns, Hungary remains committed to fostering crypto growth through safer, more regulated methods. In 2022, the financial technology associations of the Thailand Fintech Association (TFA) and the Hungarian Blockchain Coalition (HBC) signed a Memorandum of Understanding (MOU) to promote blockchain technology in their respective countries. This collaboration aims to explore ideas that benefit and enhance the growth of the blockchain industry, marking a significant milestone in financial stability for both nations.