Hungary is preparing to decriminalize cryptocurrency trading in a significant policy reversal, undoing restrictions introduced under former Prime Minister Viktor Orbán that made certain crypto transactions subject to criminal penalties.
According to a Bloomberg report, Hungarian authorities are moving to ease regulations that were implemented last year as part of a broader crackdown on digital asset activity.
The decision represents one of the most notable shifts in crypto policy among European Union member states, arriving at a time when regulators across the region continue debating how digital assets should be governed.
Hungary’s crypto crackdown and latest reversal proposal
In 2025, Hungary introduced stricter requirements governing cryptocurrency transactions, particularly crypto-to-fiat and crypto-to-crypto conversions. Under the existing framework, certain transactions were required to undergo approved validation procedures. Individuals or businesses that failed to comply with those requirements could face criminal liability, including potential prison sentences.
The rules were viewed as some of the toughest crypto-related measures in the European Union and created uncertainty for traders, investors, and blockchain businesses operating within the country.
The latest proposal would reverse those criminal provisions and effectively decriminalize crypto trading activities that had fallen under the previous rules. Although authorities have not yet released full details of the revised framework, the move suggests a broader effort to modernize Hungary’s approach toward digital assets and align more closely with evolving European regulatory standards.
The policy shift also comes as the European Union continues implementing its Markets in Crypto-Assets (MiCA) framework, which establishes a unified regulatory structure for digital asset businesses across member states.
Relief for investors and crypto businesses
If adopted, the changes could remove a major legal risk that has weighed on crypto market participants in Hungary over the past year.
Industry observers believe the reversal could encourage greater participation in digital asset markets while making Hungary more attractive to blockchain startups, crypto exchanges, and fintech firms seeking regulatory certainty.
The move may also improve Hungary’s competitiveness as European jurisdictions increasingly compete to attract crypto-related investment and innovation.
EU considers new crypto restrictions
While Hungary moves toward a more permissive stance on digital assets, the European Union is simultaneously considering a new sanctions package that could tighten restrictions in another area of the crypto market.
Earlier this week, EU officials proposed a new round of sanctions targeting Russia that includes provisions allowing member states to impose broader restrictions on certain crypto-related services. The proposal is designed to strengthen sanctions enforcement and prevent digital assets from being used to circumvent existing financial restrictions.
However, the package remains a proposal and requires unanimous approval from all 27 EU member states before it can take effect.
Europe’s crypto policy continues to evolve
The contrasting developments highlight the increasingly complex nature of crypto regulation across Europe.
On one hand, countries such as Hungary are moving away from criminal enforcement and toward regulatory frameworks focused on supervision, compliance, and innovation. On the other hand, policymakers continue to view digital assets through the lens of national security, sanctions enforcement, and financial stability.
As crypto becomes more integrated into mainstream finance, European regulators appear to be shifting toward rules that support legitimate market activity while maintaining strict oversight of compliance and geopolitical risks.
For Hungary, the latest proposal marks a clear departure from the tougher stance adopted last year and signals a more pragmatic approach toward the growing digital asset economy.
Also read: Nigeria’s Crypto Industry Faces a Major Regulatory Turning Point
