Buying Bitcoin could land you in jail! Hungary imposes heavy penalties on crypto assets: Unauthorized transactions could lead to 8 years in prison, 2 million users are left helpless.

Hungary has implemented the world's most restrictive cryptocurrency regulations, forcing several major fintech companies to suspend services and potentially criminalizing the digital asset trading activities of hundreds of thousands of citizens. (Background: The U.S. House of Representatives began a "Crypto Week" legislative marathon on the 14th: stablecoins, regulatory boundaries, and anti-CBDC!) (Supplementary background: Malta's "Crypto Fast Track": regulatory convenience or risk hazard?) If you click "buy Bitcoin" in London today, it's just another ordinary investment; but the same action in Budapest could step into criminal territory starting July 1! According to Forbes, Hungary has enacted the world's most restrictive cryptocurrency regulations, forcing several major fintech companies to suspend services and potentially criminalizing the digital asset trading activities of hundreds of thousands of citizens. The laws have been directly escalated to a criminal level. This bill officially took effect on July 1, introducing two new offenses: "abuse of crypto assets" and "unauthorized provision of cryptocurrency trading services." According to the amended criminal law, individuals using unauthorized cryptocurrency trading platforms for basic transactions could face up to 2 years in prison; if the transaction amount is considered "especially high value," exceeding 50 million Hungarian forints (about 140,000 USD), the prison term could be up to 3 years; if the transaction amount exceeds 500 million forints, it could reach 5 years. Unauthorized service providers will face even harsher penalties, with a maximum sentence of 8 years. Two million users hit the pause button. Reports indicate that London-based digital bank Revolut, which has over 2 million Hungarian customers, announced last Friday evening that it would "suspend cryptocurrency services in Hungary, effective immediately until further notice." The company stated that it is "actively working to restore services," but did not provide a specific timeline. Meanwhile, Bitstamp and Bitget have also followed suit. The Hungarian Financial Supervisory Authority emphasized that rules would be proposed within 60 days, but as of the time of writing, none have been published. One operator admitted: "No one can comply before 7/1." 500,000 token holders are at a loss. Telex reports that there are approximately 500,000 investors in Hungary who file taxes legally. If someone buys Bitcoin worth 510,000 forints (about 1,400 USD) on an unauthorized exchange without proof, they could be breaking the law. Therefore, funds and startups are assessing the possibility of relocating to the Baltic states or the UK, where regulations are clearer. Diverging from the MiCA route. It is worth noting that the EU's Markets in Crypto-Assets Regulation (MiCA) has officially launched, aiming to integrate the market through a licensing system. Hungary, however, has opted for a heavy-handed criminal approach, distancing itself from the common framework, forcing companies' cross-border compliance costs to rise, and Budapest risks becoming a "regulatory island." Analysts point out that in the short term, the government hopes to curb speculation; in the medium to long term, whether this policy represents a victory or a loss of innovation will be written in the increasingly quiet local startup space. Related reports: Singapore MAS imposes the world's strictest regulations, unlicensed exchanges to roam Earth from tonight. The U.S. is fully developing crypto: Senate regulatory hearings invite major players like Ripple and Paradigm. Australia strengthens cryptocurrency ATM regulations: cash transaction limit of 5,000 AUD, dual upgrades of KYC and monitoring.〈Buying Bitcoin can lead to imprisonment! Hungary enacts severe penalties for cryptocurrencies: unauthorized trading can result in 8 years, 2 million users are left in limbo〉This article was first published in BlockTempo, the most influential blockchain news media.