Key Takeaways
- Bloomberg reports that Hungary’s Tisza government scraps 8-year prison terms for crypto trading, reversing Orban’s 2025 rules.
- Revolut, forced out by Hungary’s validation law, now has a path to restore crypto services in 2026.
- New MiCA-aligned legislation is expected in the coming weeks as Hungary drafts its replacement framework.
A Sharp Reversal After One Election
The Bloomberg report follows the April 12, 2026, parliamentary elections in which Péter Magyar’s Tisza Party (Respect and Freedom Party) secured roughly 53% of the vote and 141 of 199 parliamentary seats, a supermajority that ended Orban’s 16-year grip on power. Magyar was sworn in as prime minister in mid-May.
The crypto policy change is part of the new administration’s broader pivot toward EU alignment, institutional reform, and restoring access to frozen EU funds.
What the Orban Rules Actually Did
Hungary‘s restrictive regime was built on the 2024 Crypto Act (Act VII of 2024) and tightened through Decree 10/2025, issued by the Supervisory Authority for Regulated Activities (SARA) on October 27, 2025. The full validation framework took effect on December 27, 2025.
The rules required a mandatory “validation certificate” from a SARA-licensed validator for virtually every crypto-to-fiat and crypto-to- crypto transaction. Validators conducted enhanced due diligence beyond standard KYC checks, including verification of asset origin, wallet ownership, and associated persons.
Transactions without a valid certificate were legally void.
Criminal Penalties That Drove Out Major Platforms
The penalties scaled with transaction size:
- Service providers and exchanges faced up to 8 years in prison for operating without proper Central Bank of Hungary (MNB) licensing.
- Individual users faced 2 to 5 years depending on transaction value, with thresholds roughly tied to 50 to 500 million HUF (approximately $162,000 to $1.62 million).
The practical result was swift. Revolut suspended crypto services in Hungary rather than absorb the compliance and criminal liability exposure. Domestic trading volumes dropped sharply, and legal uncertainty spread across market participants.
EU infringement proceedings followed, as Hungary’s national validation system conflicted with the harmonized MiCA framework for crypto-asset service providers.
What the New Government Is Scrapping
At a June 11 press conference, government spokesperson Anita Köböl confirmed the government would unwind the measures, calling the prior legislation “an unnecessary piece of legislation” that “made practical operation impossible and frightened the market participants.”
Science and Technology Minister Zoltán Tanács had signaled the week before that criminal penalties would go, describing the rules as politically driven rather than market-protective.
Planned changes include:
- Full abolition of the mandatory validation certificate requirement.
- Complete decriminalization of crypto trading and related services.
- Removal of all jail terms for users and service providers.
- A new regulatory framework built around EU MiCA licensing standards.
What Comes Next
Platforms, including Revolut, now have a clearer path to resume crypto services in Hungary. Trading volumes and market liquidity are expected to recover as legal risk recedes.
The transition timeline, including new legislation drafts and any grandfathering provisions, will determine how quickly normal market activity resumes. Further legislative details are expected over the coming weeks and months.
The move positions Hungary to re-enter the European regulatory mainstream after operating one of the continent’s most restrictive crypto regimes through late 2025.
