Hungary's Tisza government is scrapping criminal penalties for crypto trading, reversing rules imposed under Viktor Orban's administration, according to a Bloomberg report published June 11. Péter Magyar's Tisza Party secured roughly 53% of the vote and 141 of 199 parliamentary seats in the April 12, 2026 parliamentary elections, ending Orban's 16-year rule. The policy reversal is part of the new administration's broader pivot toward EU alignment and restoring access to frozen EU funds, with government spokesperson Anita Köböl confirming at a June 11 press conference that the prior legislation made practical operation impossible and frightened market participants.
Tisza Party Secures Supermajority in April 12 Election
The April 12, 2026 parliamentary elections delivered Péter Magyar's Tisza Party (Respect and Freedom Party) 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 follows the new administration's broader institutional reform agenda.
Orban Administration Enacted Validation Framework Through Act VII of 2024
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 Scaled Up to 8 Years for Service Providers
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).
Government Spokesperson Confirms Policy Reversal at June 11 Press Conference
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 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, and a new regulatory framework built around EU MiCA licensing standards. New MiCA-aligned legislation is expected in the coming weeks as Hungary drafts its replacement framework.
Revolut Suspended Services Under Prior Regime
Revolut suspended crypto services in Hungary rather than absorb the compliance and criminal liability exposure created by the validation framework. 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.
Platforms, including Revolut, now have a path to restore crypto services in 2026. The transition timeline, including new legislation drafts and any grandfathering provisions, will determine how quickly normal market activity resumes.
FAQ
What did Hungary's Tisza government do on June 11 regarding crypto penalties?
Government spokesperson Anita Köböl confirmed at a June 11 press conference that Hungary would scrap criminal penalties for crypto trading, reversing rules imposed under the Orban administration. The changes include full abolition of the mandatory validation certificate requirement and removal of all jail terms for users and service providers.
Why did Revolut suspend crypto services in Hungary?
Revolut suspended crypto services in Hungary rather than absorb the compliance and criminal liability exposure created by the validation framework that took effect December 27, 2025. The framework required mandatory validation certificates for transactions and imposed up to 8 years in prison for service providers operating without proper licensing.
When did Péter Magyar's Tisza Party win the parliamentary election?
Péter Magyar's Tisza Party secured roughly 53% of the vote and 141 of 199 parliamentary seats in the April 12, 2026 parliamentary elections, ending Viktor Orban's 16-year rule. Magyar was sworn in as prime minister in mid-May.
