On July 14, according to Forbes, Hungary officially implemented one of the world's most stringent cryptocurrency regulations starting July 1, forcing several major financial technology companies to suspend related services and potentially criminalizing digital asset trading activities for hundreds of thousands of citizens. This significant policy change has caused widespread disruption and concern in the financial technology sector.
London-based digital bank Revolut announced late last Friday that it would "immediately suspend cryptocurrency services in Hungary until further notice." Revolut has over 2 million users in Hungary. The company stated that it is "working to restore services as soon as possible" but did not provide a specific timeline for resumption. The suspension covers all new cryptocurrency purchases, staking activities, and top-up operations, though users can still sell existing holdings and transfer some tokens to external wallets. Revolut's other banking services remain unaffected.
The new Hungarian regulations introduced two criminal offenses: "cryptocurrency asset abuse" and "providing unauthorized cryptocurrency exchange services". According to Hungary's recently revised legal code, individuals using unauthorized cryptocurrency trading services may face up to two years in prison for basic transaction activities; if the transaction amount exceeds 50 million Hungarian forints (approximately $140,000), the prison term can extend to three years; and if it surpasses 500 million forints (approximately $1.4 million), the maximum sentence can reach five years.
