Hungary’s new government plans to fully decriminalize cryptocurrency trading and dismantle the punitive framework introduced under former Prime Minister Viktor Orban, eliminating prison sentences of up to eight years for ordinary users and service providers, according to Bloomberg.
Sharp Policy Reversal After April Elections
The move follows the April 12 national elections that ended Orban’s 16-year rule, marking a significant shift in the country’s approach to digital assets. The planned overhaul would remove criminal penalties that had applied to crypto activities under the previous administration.
End of Orban-Era Penalties
Under the outgoing framework, individuals and service providers involved in cryptocurrency trading faced potential prison terms of up to eight years. The new government intends to lift those penalties and scrap the associated enforcement regime, Bloomberg reported. Further details on implementation and any replacement oversight measures were not immediately available.
EU Context
As a member of the European Union, Hungary is also subject to the bloc’s Markets in Crypto-Assets (MiCA) framework, which standardizes licensing and rules for crypto-asset service providers across member states. Decriminalization would address national criminal liability, while regulatory and compliance obligations at the EU level remain in effect.
Additional information on legislative timelines and the scope of the changes is expected as the government formalizes its plans.