Stricter Crypto Regulations Enforced

     From 1 July 2025, Hungary has introduced stringent new cryptocurrency regulations aimed at tightening control over both crypto companies and users. The National Bank of Hungary (Magyar Nemzeti Bank) will oversee licensing for crypto-asset markets, reinforcing the banks’ dominance over decentralised alternatives. Critics argue these rules amount to a direct assault on economic freedom.

Heavier Taxation and Legal Penalties

     The new rules impose a flat 15% tax on individual profits from crypto trading, without any exemptions for long-term holdings. For businesses, the tax rate is set at 9%. Additionally, crypto service providers now face stricter licensing requirements. Operating an unlicensed exchange could result in up to 8 years in prison, while users of such platforms may face 2 to 5 years behind bars.

My Perspective

     These harsh policies may lead to centralised crypto platforms either exiting Hungary or operating under minimal profit margins. A similar trend has already been seen in India, where high taxes forced many platforms out. Hungary, with a smaller market, could witness a significant decline in crypto-related employment and innovation if this direction continues.

Published on Wubits