Blab Crypto
Hungary to Repeal Criminal Penalties for Crypto Services, Signals Shift Toward EU-Aligned Regulation
On June 6, Hungary’s newly appointed Minister of Science and Technology, Zoltán Tanács, announced that the country will repeal the criminal penalties that had been imposed on providers of unauthorized cryptocurrency services. The decision reverses a set of rules that took effect on July 1, 2025.
The July 2025 regulations introduced criminal sanctions for individuals and companies that offered crypto services without the required authorization. Penalties included up to two years in prison for individuals and substantial fines for firms. While the rules were intended to protect consumers, they were widely viewed as overly restrictive for the fintech sector.
The regulations had a measurable impact on the domestic market. Major fintech platforms, most notably Revolut, withdrew their crypto offerings from Hungary and several other EU states. Local exchanges faced increased compliance costs, while competitors in more permissive jurisdictions gained a competitive advantage.
Tanács, who was appointed following the April elections, described the previous framework as politically motivated. He said the new government will remove the criminal penalties and other restrictions that had made it difficult for crypto businesses to operate. The move is part of a broader strategy to align Hungary with EU digital policy.
The announcement also mentioned possible amendments to the rules governing cybersecurity auditors under the EU NIS2 directive. Roughly 4,000 Hungarian companies are currently preparing for a June 30 compliance deadline. Adjustments could ease the burden on firms that must meet NIS2 requirements, which cover network and information security for critical sectors. NIS2 requires companies to conduct regular audits and report incidents, and the proposed changes could reduce the frequency or scope of these obligations.
The European Union’s Markets in Crypto‑Assets Regulation (MiCA) was adopted in 2023 and became fully applicable in December 2024. MiCA seeks to create a harmonized regulatory framework across member states, covering crypto‑assets that are not regulated by existing financial legislation. By removing Hungary’s additional restrictions, the country would reduce regulatory fragmentation and make it easier for local firms to operate within the EU market. MiCA also establishes licensing requirements for crypto‑asset service providers and sets consumer protection standards, which will now apply more uniformly across member states.
The new government has cited Estonia’s e‑governance model as an example of a digitally progressive state. Estonia’s regulatory environment is often described as business‑friendly and aligned with EU standards, a benchmark that Hungary appears to be targeting.
Investors and market participants will watch whether the criminal penalty provisions are formally repealed and whether platforms such as Revolut re‑introduce crypto services in Hungary. The decision could influence the competitive landscape for fintech and crypto service providers in Central Europe.
At present, the Hungarian government has not released a detailed legislative roadmap. However, the announcement signals a clear shift toward a more open regulatory stance. The next steps will involve formal repeal of the July 2025 rules and potential adjustments to NIS2 compliance requirements.
The outcome will affect local crypto businesses, foreign fintech entrants, and the broader EU digital asset ecosystem. If the reforms proceed, Hungary could become a more attractive jurisdiction for crypto service providers, potentially attracting new investment and fostering innovation in the region.
The July 2025 regulations introduced criminal sanctions for individuals and companies that offered crypto services without the required authorization. Penalties included up to two years in prison for individuals and substantial fines for firms. While the rules were intended to protect consumers, they were widely viewed as overly restrictive for the fintech sector.
The regulations had a measurable impact on the domestic market. Major fintech platforms, most notably Revolut, withdrew their crypto offerings from Hungary and several other EU states. Local exchanges faced increased compliance costs, while competitors in more permissive jurisdictions gained a competitive advantage.
Tanács, who was appointed following the April elections, described the previous framework as politically motivated. He said the new government will remove the criminal penalties and other restrictions that had made it difficult for crypto businesses to operate. The move is part of a broader strategy to align Hungary with EU digital policy.
The announcement also mentioned possible amendments to the rules governing cybersecurity auditors under the EU NIS2 directive. Roughly 4,000 Hungarian companies are currently preparing for a June 30 compliance deadline. Adjustments could ease the burden on firms that must meet NIS2 requirements, which cover network and information security for critical sectors. NIS2 requires companies to conduct regular audits and report incidents, and the proposed changes could reduce the frequency or scope of these obligations.
The European Union’s Markets in Crypto‑Assets Regulation (MiCA) was adopted in 2023 and became fully applicable in December 2024. MiCA seeks to create a harmonized regulatory framework across member states, covering crypto‑assets that are not regulated by existing financial legislation. By removing Hungary’s additional restrictions, the country would reduce regulatory fragmentation and make it easier for local firms to operate within the EU market. MiCA also establishes licensing requirements for crypto‑asset service providers and sets consumer protection standards, which will now apply more uniformly across member states.
The new government has cited Estonia’s e‑governance model as an example of a digitally progressive state. Estonia’s regulatory environment is often described as business‑friendly and aligned with EU standards, a benchmark that Hungary appears to be targeting.
Investors and market participants will watch whether the criminal penalty provisions are formally repealed and whether platforms such as Revolut re‑introduce crypto services in Hungary. The decision could influence the competitive landscape for fintech and crypto service providers in Central Europe.
At present, the Hungarian government has not released a detailed legislative roadmap. However, the announcement signals a clear shift toward a more open regulatory stance. The next steps will involve formal repeal of the July 2025 rules and potential adjustments to NIS2 compliance requirements.
The outcome will affect local crypto businesses, foreign fintech entrants, and the broader EU digital asset ecosystem. If the reforms proceed, Hungary could become a more attractive jurisdiction for crypto service providers, potentially attracting new investment and fostering innovation in the region.
