Hungary has recently implemented a cryptocurrency law that has led to the suspension of digital asset services by several firms.
The legislation, which took effect on 1 July 2025, introduces criminal penalties for individuals and companies engaging in unauthorised crypto trading and services.
Under the amended Criminal Code, individuals conducting cryptocurrency transactions through unlicenced platforms could face up to two years in prison. That sentence increases to three years for transactions exceeding HUF 50 million (around USD 140,000) and up to five years for trades over HUF 500 million. Companies offering crypto exchange services without formal authorisation may face prison terms of up to eight years for larger-scale operations.
Industry estimates suggest that roughly 500,000 Hungarians have previously acquired digital assets using declared income. The law’s ambiguous wording and absence of implementation guidelines have raised fears that routine investment activity could now be subject to criminal prosecution. Although the Hungarian Financial Supervisory Authority (SZTFH) has a 60-day period to issue regulatory guidance, no official documentation has yet been released.
Fintech providers suspend services as law takes effect
Revolut, which has over 2 million customers in Hungary, was among the first companies to respond, announcing on 5 July 2025 the immediate suspension of its crypto services in the country. A representative from the company confirmed that the decision would remain in place until further notice, though efforts are underway to resume operations. Customers can still sell existing digital assets or transfer them to external wallets, but new purchases and staking are no longer available. Other financial services offered by the company remain unaffected.
The introduction of these rules coincided with the European Union’s Markets in Crypto-Assets (MiCA) regulation, which also came into force on 1 July. Unlike Hungary’s approach, MiCA is designed to establish consistent cryptocurrency rules across EU member states. Several countries within the bloc have postponed full enforcement of MiCA to accommodate the licencing process, whereas Hungary’s implementation proceeded without transitional measures or clarity.
Industry analysts have questioned why Hungary chose to diverge so significantly from the EU framework. One analyst noted that adopting stricter rules at the moment of European harmonisation is difficult to justify, particularly given that many firms were preparing for MiCA compliance.
