Hungary’s government rolled out strict rules on digital tokens that ban many common activities and threaten users with prison.
The law affects local and global companies, from Revolut to small crypto firms, and could make trading coins illegal for hundreds of thousands of citizens, all without clear guidance on how to follow the new rules, according to a latest report by Forbes.
Revolut Halts Crypto Services
Revolut, the London‑based digital bank with over 2 million users in Hungary, said on Friday that it would stop all crypto services there immediately. New buys, staking, and deposits are now off limits.
Customers can still sell tokens they already own and move select coins out of the app. Revolut stressed that its regular banking features remain unchanged, but gave no date for when crypto buying might return.
The revised Criminal Code creates two new crimes. Anyone caught trading on an unlicensed crypto platform faces up to 2 years in jail. If the trade value exceeds 50 million forints (about $140 000), the sentence can rise to 3 years.
Trades above 500 million forints could earn up to 5 years. Firms that run services without official approval risk up to 8 years behind bars for large‑scale operations.
Half a Million at Risk
Local publisher Telex reported that experts believe roughly 500,000 Hungarians bought cryptocurrencies using their taxed income. With no clear rules on who must register or how to comply, many everyday activities now sit in a legal grey area.
One industry source, speaking on condition of anonymity, said “no one can meet these rules as they stand.” The country’s financial watchdog has 60 days to issue compliance steps, but so far, there is silence.
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EU Rule Clash
Hungary’s crackdown comes exactly when the European Union’s Markets in Crypto Assets regulation took effect. MiCA aims to set uniform requirements across the bloc, but Hungary’s law veers sharply away from that goal.
Other member states have delayed MiCA, while some already accept applications. Observers ask why Budapest chose to impose harsher limits just as the EU seeks to harmonise.
People from the industries are worried that, due to steps like these, Hungary could lose deals with fintech firms and crypto start-ups. And because of this, some local companies are also thinking of moving out of Hungary to somewhere with more friendly crypto policies, like Western Europe.
In fact, one venture capital source informed that these types of exits are vital for crypto startups to grow. If Hungary cannot give that, then firms and enterprises will eventually move out of the country.
Wider Regulatory Push
At the same time this crypto ban was put into effect, Hungary had already been tightening foreign takeover policies and business engagements; this latter move is viewed as a response to wealthier opposition factions.
Some perceive the token law as an attempt to limit capital outflow following a controversial sovereignty protection law that reassigns certain funds to the government.
While global exchanges such as Coinbase and Binance may keep serving Hungarians from abroad, local platforms face a near‑impossible choice.
They cannot legally operate under the new rules and risk severe penalties. At the same time, individual traders worry that routine buying and selling could land them in court.
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