Hungary Imposes Strict Crypto Regulations, Causing Service Suspensions

Hungary has enacted new, stringent cryptocurrency regulations on July 1, resulting in major service disruptions for fintech companies like Revolut, which suspended crypto services for over 2 million users in the country.

New rules criminalize certain crypto trading activities and require all pre-existing crypto service providers to comply with the Markets in Crypto-Assets Regulation (MiCA) by July 2025.

Hungary’s Tough Crypto Laws Shake Fintech Market

Hungary’s new regulations redefine the landscape for cryptocurrency trading, introducing severe penalties for unauthorized activities. This regulatory shift mandates compliance with MiCA, leading financial services like Revolut to halt crypto operations.

The immediate impact on fintech services is significant. Revolut’s suspension affects crypto purchases, staking, and top-ups, though users can sell or transfer existing assets. Industry critics warn of broader market instability.

This transitional period is more than just a buffer—it’s a strategic opening. It gives existing players the time to align with MiCA’s demands, while offering new investors and market entrants a window to position themselves ahead of full regulatory enforcement. — Ákos Mátés-Lányi, Partner, Taylor Wessing Hungary

Community response has been intense. Revolut users and fintech entities express dismay over service interruptions. Legal experts advise market adaptation and compliance, citing potential for market realignment under these new conditions.

Bitcoin Price Steady Despite Hungary’s Regulatory Changes

Did you know? Hungary’s stern approach to crypto regulation mirrors historical efforts like India’s 2018 clampdown, which initially reduced trading volume but later saw adaptation via peer-to-peer markets.

According to CoinMarketCap, Bitcoin’s price stands at $121,826.68, with a market cap of $2.42 trillion and a 24-hour trading volume of $108.52 billion. Over the past 60 days, Bitcoin’s price surged by 19.38%.

Coincu researchers suggest these regulations might drive market consolidation, urging firms to swiftly meet compliance. Impacts could reshape Hungary’s fintech scene, aligning closely with EU-wide standards while affecting global crypto market dynamics.