The political earthquake in Hungary is spreading beyond Budapest, significantly impacting how Europe regulates crypto after opposition leader Péter Magyar and the pro-EU Tisza party ended Viktor Orbán's 16-year rule.
This outcome could end one of the most controversial crypto crackdowns in Europe and pave the way for the reintroduction of common regulations on digital assets under the Crypto Asset Markets Regulation (MiCA) at the EU level.
What does Viktor Orbán's failure mean for crypto and MiCA in Hungary?
Initial forecasts indicated that the Tisza Party would secure a large majority of seats in Parliament, while Orbán was believed to have accepted defeat.
This result marks a major political shift, bringing Hungary closer to Brussels after years of tension over legal and economic issues.
Political analyst Ian Bremmer called it a "historic victory for the Hungarian people," while strongly criticizing Orbán's record in power.
European Commission President Ursula von der Leyen also said she expects Hungary to cooperate more closely with EU institutions.
"The heart of Europe is beating stronger in Hungary tonight," she wrote .
Under Orbán's leadership, Hungary implemented a strict "verification" policy, requiring exchanges to have special certificates, with criminal penalties for non-compliance – this was XEM as exceeding the general framework set by MiCA .
The European Commission had previously initiated legal proceedings against Budapest for violations of these stricter regulations.
Now, if the government led by Mr. Magyar comes to power, it is highly likely that these regulations will be abolished, helping to resolve disagreements with the EU and bring transparency to the market's regulations.
Companies in the industry, such as Revolut, which temporarily suspended crypto services for retail investors in Hungary during the 2025 tightening of regulations, could return to the market if the barriers are removed.
This development also reinforced confidence on crypto prediction platforms. On Polymarket, many traders had bet large sums of money on Orbán's failure – and the current results show they were right.
Bet on Hungary, Tisza, and Orbán. Source: PolymarketThis outcome is not unique to Hungary; it is likely to influence how other member states comply with MiCA without adding their own regulations, further advancing the EU's goal of building a unified digital asset market.
Although the final outcome and the formation of a new government are not yet entirely decided, Orbán's departure could not only change Hungarian politics but also reshape the legal landscape of crypto across Europe.
