Hungary’s government plans to reverse restrictive cryptocurrency trading rules that exposed users and service providers to potential prison sentences for transactions conducted without approved validation.

Government spokesperson Anita Köböl said the administration will unwind regulations introduced in 2025 that required compliance certificates for crypto-to-fiat and crypto-to-crypto conversions, arguing that the framework damaged market activity.

“This was an unnecessary piece of legislation. It made practical operation impossible and frightened the market participants,”

Said Hungarian government spokesperson, Anita Köböl.

Köböl said the restrictions negatively affected several hundred thousand people and contributed to a…