Short-term contraction expected as Hungary adds crypto trading to criminal code

Hungary’s criminal code now penalizes unlicensed cryptocurrency exchanges, threatening a decline in local market activity. Kornél Kalocsai from Blockchain Hungary stresses that, while compliant exchanges can remain operational, the law’s vague execution could deter market participants.

The penalties include significant prison terms, particularly for high-volume trading. Kalocsai suggests clarity in implementation is crucial to avoid discouraging legal crypto operations in Hungary as the EU’s MiCA regulations come into effect by 2026.

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