The Central European country, Hungary, has introduced strict laws on cryptocurrency that are already shaking up the country’s digital finance space. Since July 1, 2025, individuals and companies who trade crypto without proper approval can face a prison sentence. The new law makes it illegal to exchange crypto assets, like bitcoin or ether, without a special validation certificate issued by licensed authorities.
For companies offering unlicensed crypto services, the penalty could be as high as eight years. Additionally, the government has yet to approve any of these licensed validators. This means that there is no legal way to trade crypto in Hungary right now. The law is intended to align Hungary with the EU’s anti-money laundering efforts.
The Hungarian government’s new law creates two crimes: using crypto in illegal ways and running an unapproved crypto exchange. People who use unlicensed crypto services can face up to two years behind bars. For trades exceeding $140,000, the term could be three years. The penalty for huge trades over $1.4 million is up to five years in prison.
Revolut Freezes Crypto Accounts in Hungary
Popular fintech company Revolut has responded by suspending all crypto-related services for Hungarian customers. As of July 7, users in Hungary can no longer buy, sell, stake, or even withdraw their crypto through the app. Their crypto wallets have been frozen, though Revolut says other features like banking and currency exchange are still active.
Revolut explained that this move is temporary and that they plan to return once they receive the proper licenses. These regulatory guidelines will come from the EU’s Market in Crypto Assets (MiCA) regulation and Hungary’s central bank. Still, the sudden freeze has upset many customers, especially since no warning was given.
Other crypto companies also have limited services in Hungary, while larger platforms like Binance and Coinbase continue operations. Even though these exchanges probably won’t be directly targeted, they still need to follow Hungarian and EU rules to keep running in the region. So far, the most significant impact has been on about 500,000 Hungarian crypto users and local crypto firms. Many now face uncertainty, as there is no clear timeline for when services will resume.
Other EU Countries Embrace Crypto
Despite Hungary’s move to halt crypto services, other EU countries have embraced the asset class. For instance, Kraken recently secured a MiCA license in Ireland, allowing it to offer regulated crypto services like trading and custody across the EU.
Earlier this year, the leading American crypto exchange Coinbase also gained a MiCA license in Luxembourg, unlocking access to all EU markets under one approval.
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