On 1 July 2025, new amendments to the Hungarian Criminal Code (Btk.) came into effect, introducing two specific criminal offenses directly related to crypto asset activities: misuse of crypto assets and unauthorized provision of crypto asset exchange services. The goal of the legislation is clear: to provide legal protection for digital assets and sanction unlicensed activities that distort the crypto market.

The two new statutory provisions are:

• Misuse of Crypto Assets – Section 394/A of the Criminal Code
• Unauthorized Provision of Crypto Asset Exchange Services – Section 408/A of the Criminal Code

1. Misuse of Crypto Assets – A New Property Offense

Section 394/A penalizes the "black market" exchange of crypto assets, not from the service provider's side, but from the user’s side.

Key legislative wording:

Anyone who exchanges a crypto asset of significant value into money or another crypto asset by using an unauthorized crypto asset exchange service, commits a criminal offense, unless a more serious crime is involved.

Interpretation:

This provision targets cryptocurrency users who knowingly utilize the services of unlicensed or unauthorized providers (such as informal private exchangers or Telegram-based platforms).

Penalties:

• Basic case (significant value):
  → misdemeanor, punishable by up to 2 years of imprisonment
• If involving especially large value:
  → up to 3 years of imprisonment
• If involving exceptionally high value:
  → between 1 and 5 years of imprisonment

Note: Under Hungarian law, “significant value” begins at HUF 500,000 (€1,250), “especially large value” at HUF 5 million (€12,500), and “exceptionally high value” at HUF 50 million (~€125,000).

2. Unauthorized Provision of Crypto Asset Exchange Services – Service Provider Liability

Section 408/A specifically addresses service providers engaging in crypto asset exchange activities without proper authorization or registration, as required by the upcoming Hungarian crypto markets law (expected to enter full force in the second half of 2025).

Key legislative wording:

Anyone who provides crypto asset exchange services of significant value in violation of validation obligations is committing a criminal offense.

Who is affected?

• Crypto exchanges and swap providers operating without a license or registration
• Operators of peer-to-peer (P2P) platforms if running on a business-like scale
• Companies operating crypto ATMs or web-based interfaces that have failed to comply with licensing or notification requirements

Penalties:

• Basic case (significant value):
  → felony, punishable by up to 3 years of imprisonment
• If involving especially large value:
  → between 1 and 5 years of imprisonment
• If involving exceptionally high value:
  → between 2 and 8 years of imprisonment

3. Why Is This Relevant in Practice?

• Crypto users may now be held criminally liable if they knowingly engage with unlicensed providers.
• Service providers face serious sanctions for failing to meet validation or licensing obligations.
• Cooperation between the Hungarian Tax Authority (NAV), the Central Bank (MNB), and law enforcement agencies is expected to increase, particularly concerning large transactions and undeclared crypto income.
• Crypto assets are now unambiguously recognized as property under criminal law, establishing clear protection and accountability.

Summary

The 2025 Criminal Code amendment is a strong signal that Hungarian lawmakers intend to keep pace with the digital economy and equip authorities with effective tools to combat abuse and illegal financial activity in the crypto sector.

Our Expertise

Our firm specializes in legal compliance and criminal defense related to crypto assets.

We offer:

• Criminal and anti-money laundering (AML) due diligence for crypto asset transactions
• Defense representation for individuals and service providers under criminal investigation
• Preventive legal advisory for crypto exchange operators or digital asset service providers to ensure legal and risk-free operations

We also assist in structuring and executing crypto-fiat exchange processes in a fully compliant, transparent, and streamlined manner – from planning to completion.

Contact us if you wish to prevent legal risks or are already involved in a criminal proceeding related to crypto assets.