Those who use or operate unlicensed cryptocurrency exchanges may face jail time under Hungary’s amended Criminal Code.
Laws in Hungary have been established that could put cryptocurrency traders who use unapproved exchanges in jail.
According to a July 1 amendment to the nation’s Criminal Code, users of so-called “unauthorized crypto-asset exchange services” might be sentenced to up to two years in prison, with the penalties escalating according to the value transacted.
Unauthorized crypto service providers are also targeted by the amended laws, which carry a maximum sentence of three years in prison. This sentence might rise in response to the value of illegal trades.
Since there is no advice and Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has 60 days to create compliance frameworks for the regulations, local news outlet Telex reported on July 1 that the laws have perplexed crypto firms operating in the nation.
For “abuse of crypto-assets,” a new law in Hungary
According to the first amendment to Hungary’s Criminal Code, trading between 5 million and 50 million forints ($14,600 and $145,950) through an unapproved cryptocurrency exchange carries a maximum sentence of two years in prison.
If the offense is of “a tremendous value,” between 50 million and 500 million forints ($145,950 to $1.46 million), the penalty increases to up to three years.
Penalties for offenses over 500 million forints might last up to five years.
Individuals who engage in illicit “crypto-asset exchange service activities” involving up to 50 million forints ($145,950) may face up to three years in prison under the second amended law regarding cryptocurrency.
Crypto service providers can face up to five years in prison for offenses involving amounts under 500 million forints ($1.46 million) and up to eight years in jail for offenses involving amounts over 500 million forints. These penalty increases are similar to those imposed by the regulations governing unlawful exchanges or usage.
Revolut removes various cryptocurrency services before resuming them.
Due to the regulations, UK-based fintech company Revolut withdrew its services from Hungary earlier this month, according to the local site Portfolio.
Due to “recently introduced Hungarian legislation,” a section of Revolut’s website stated that it has suspended all cryptocurrency-related services nationwide, including withdrawals from the platform. IIt did not specify when it would resume services.
On Monday, Portfolio revealed that Revolut has once again allowed cryptocurrency withdrawals exclusively. Additionally, Revolut stated that its EU division is attempting to obtain a crypto license within the EU.
