Government reverses restrictive framework that drove Revolut and others from the country
Hungary’s government is dismantling the restrictive digital asset framework introduced under former Prime Minister Viktor Orbán, a policy overhaul that will decriminalize cryptocurrency trading and eliminate prison sentences that had driven major platforms from the country.
The reversal targets legislation that took effect on July 1, 2025. That framework criminalized use of unlicensed exchanges and imposed prison sentences ranging from two to five years for high-value crypto transactions between 50 million and 500 million Hungarian forints (roughly $162,000 to $1.62 million). Unlicensed service providers faced up to eight years in prison. The rules also required approved validation for both crypto-to-fiat and crypto-to-crypto conversions.
Zoltán Tanács, Hungary’s Minister of Science and Technology, characterized the previous rules as “politically motivated” rather than market safeguards. The new administration plans to align national law with the EU’s Markets in Crypto-Assets regulation (MiCA), which binds all 27 EU member states.
Cryptocurrency platform Revolut suspended crypto services in Hungary due to compliance burden. Domestic trading volumes fell as local firms absorbed steep compliance costs. The Orbán-era framework was one of the most restrictive in the European Union, prompting the EU to launch a probe into whether restrictions complied with bloc-wide regulations.
Officials identified Estonia as the template for rebuilding Hungary’s digital regulatory environment. The government spokesperson Anita Kobol confirmed the policy shift, though the exact date when legislative changes will take effect has not been specified.
The reversal comes as other nations recalibrate crypto policy. Pakistan’s central bank lifted an eight-year ban on cryptocurrency operations in April 2026, signaling a broader shift toward regulatory clarity in digital assets across multiple jurisdictions.
Hungary’s move addresses a compliance gap that affected approximately 4,000 Hungarian businesses subject to the EU’s NIS2 directive, which establishes cybersecurity standards for critical infrastructure and essential service providers. The new framework is expected to reduce compliance friction and potentially attract platforms back to the market.
