Hungary is poised to reverse its strict anti-crypto policies, with the new government planning to decriminalize cryptocurrency trading and dismantle the punitive measures introduced by former Prime Minister Viktor Orbán in 2025. The shift comes nearly two months after Orbán’s 16-year tenure ended in elections that signaled a broader realignment toward Western institutions.
The Orbán-era rules required approved validation certificates for conversions between digital and traditional currencies, as well as for crypto-to-crypto exchanges. Most controversially, they stipulated prison sentences for large transactions—up to three years for conversions exceeding $140,000 and five years for those above $1.4 million, according to a Forbes report. Many popular trading platforms were forced to leave Hungary or severely restrict local services, leading to a plunge in trading volumes and an EU investigation into compliance with its regulations.
Now, government spokeswoman Anita Kobol has confirmed that Hungary will remove the threat of jail time and criminal charges for using unauthorized exchanges or conducting non-compliant transactions. The transaction-level validation certificate requirement will also be scrapped, and the country plans to align its laws with the EU’s Markets in Crypto-Assets (MiCA) framework. “We are dismantling the existing punitive approach and moving toward a regulatory environment that supports innovation while protecting consumers,” Kobol said.
The U-turn is expected to restore crypto investor confidence, encourage blockchain startups to operate in Hungary, and potentially attract international businesses seeking regulatory clarity. Observers note that this reflects a broader European trend of balancing innovation with consumer safeguards, and Hungary’s move may influence neighboring countries still evaluating their own crypto strategies.
