“On July 1, new rigid criminal rules for users and operators of unregistered cryptocurrency services came into force in Hungary. Experts warn of legal confusion and the exit of financial companies from the local market, reports Forbes. The new rules of the Criminal Code provide for up to 2 years in prison for the use of unlicensed exchangers, up to 3 years for transactions of more than 50 million forints […]”, – WRITE: Businessua.com.ua
On July 1, new rigid criminal rules for users and operators of unregistered cryptocurrency services came into force in Hungary. Experts warn of legal confusion and the exit of financial companies from the local market, reports Forbes.
The new rules of the Criminal Code provide for up to 2 years in prison for the use of unlicensed exchangers, up to 3 years for transactions of more than 50 million forints (~ $ 140,000) and up to 5 years – over 500 million forints. The providers of such services are threatened with up to 8 years in prison.
According to the local edition of Telex, at least 500,000 Hungarians have purchased cryptocurrency using legal funds. These users can now face legal risks.
“The problem is that it is impossible to comply with this law at the time of its entry into force,” said an unnamed industry expert in a comment for Forbes.
The law is not accompanied by implementation instructions for business or users. The SZTFH Hungarian Finregulator has 60 days to develop a framework.
Experts also stressed that the new law conflicts with the unified rules for European cryptocurrency implemented by MICA.
“It is unclear why Hungary imposes such restrictions when the EU implements common standards,” one of the sectoral analysts said.
Legal uncertainty can make cryptobusiness go. It is reported that some startups are already considering Baltic countries or other more loyal jurisdictions.
The British Digital Bank Revolut has announced the temporary suspension of crypto services for over 2 million users in Hungary. The company explained that it was doing everything possible for the fastest return of functionality, but did not name the time.
Cryptocurrency, stinging and replenishment of accounts were banned. At the same time, users can sell available assets and transfer some of the tokens on the outer wallets. Other banking functions work in the usual mode.
Recall that the European Office for Securities and Markets (ESMA) criticized Malta officials for shortcomings in the crypto companies licensing procedure.
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