Hungary has enacted new and strict regulations on cryptocurrencies, which prohibit the use of unlicensed exchange platforms or the execution of high-value transactions without authorization.
The law, passed on June 17 and in force since July 1, imposes prison sentences of up to five years for individuals and eight years for service providers who violate the rules.
The legislation, which places oversight under the National Bank of Hungary, requires all cryptocurrency companies to obtain a license from the central bank.
Although holding cryptocurrencies remains legal, the lack of clear procedures for licensing has left companies in a state of uncertainty.