Revolut has suspended all cryptocurrency services for Hungarian customers following the government's criminalisation of unauthorised crypto transactions under a sweeping legislative package. The neobank froze users’ entire crypto holdings as of July 7 "until further notice" without prior notice, thus preventing even sales of tokens, in response to the tightening regulatory environment.

Revolut emphasised that the suspension is temporary and aims to ensure full compliance with both domestic and EU regulations. While the company is working to obtain a Markets in Crypto-Assets (MiCA) licence via its EU entity, Revolut Digital Assets Europe, the new Hungarian law also requires a separate licence from the National Bank, an additional hurdle for fintech firms.

Revolut initially said its application for a MiCA licence was still under review, and it had temporarily paused new crypto registrations to minimise regulatory risk during the transition. However, as of Monday, the platform ceased serving even existing crypto customers in Hungary. The company says it will resume onboarding new crypto users as soon as its MiCA authorisation is granted, but has not provided a specific timeline.

According to local media, the number of people holding crypto assets in Hungary is estimated to be around 500,000 people.

Revolut’s moves also coincided with amendments to Hungary’s Criminal Code passed on June 17, introducing harsh penalties, including up to eight years in prison, for unlicensed crypto service providers and their clients as well. Under the law, users risk 2-5 years’ imprisonment, while providers can face 3-8 years for operating without the necessary authorisation.

The Hungarian government justified the legislative change to align with EU rules, including anti-money laundering and terrorist financing safeguards. But critics argue the result has been legal overreach with potentially chilling effects on innovation. The government has yet to clarify how it intends to apply the law, and industry players warn of the dangers of overly broad interpretation

The Hungarian Fintech Association (MAFISZ) stated that the amendments were introduced unexpectedly and have raised several questions, among them, the precise definition of "unauthorised service use" and the interpretation of terms like "validation."

They warned that Hungarian fintechs and talent risk migrating to jurisdictions perceived as more crypto-friendly, such as the UK, Singapore, or even Dubai, Telex.hu writes.

The stricter domestic stance has prompted other players to follow suit. Bitstamp, which already holds a MiCA-compliant licence, also ceased trading services for Hungarian users, citing legal uncertainty and the risk of fines. Only deposits, withdrawals, and staking remain available on its platform.

Despite the disruption, Revolut stressed that its banking, FX, and savings services remain unaffected. Analysts note that while MiCA aims to harmonise crypto regulation across the EU, Hungary’s additional licensing demands could limit market access and innovation in the short term.

Major global platforms like Binance, Coinbase and Kraken continue to operate as before, seemingly unfazed by the changes or interpreting the legislation as not applicable to them, citing existing EU-level licensing and the absence of detailed enforcement guidance. Other firms, such as Hungary’s CoinCash, have paused new customer registrations while continuing to serve existing users.