Hungary enacted Europe's most restrictive cryptocurrency legislation effective July 1, 2025, criminalizing unlicensed crypto transactions with prison sentences of up to 5 years for individuals and 8 years for service providers. The law prompted London-based Revolut to immediately freeze all cryptocurrency assets for Hungarian users without warning on July 7, locking approximately 500,000 citizens out of their digital holdings indefinitely.
The legislation mandates prison terms scaled by transaction value: 2 years for basic unauthorized trades, 3 years for transactions exceeding 50 million Hungarian forints ($140,000), and 5 years for deals over 500 million forints. Despite Revolut pursuing a Markets in Crypto-Assets (MiCA) license through its EU entity, Hungary requires a separate national license from its central bank – though no application process or criteria exist, creating regulatory limbo.
Bitstamp followed Revolut in suspending Hungarian crypto services despite holding EU licenses, halting deposits, withdrawals, and staking. Domestic exchange CoinCash paused new registrations while global platforms like Binance and Coinbase continue operating under existing EU authorization. The Hungarian Fintech Association warns the crackdown risks driving talent and businesses abroad to crypto-friendly jurisdictions like the UK and Singapore, with local media estimating 500,000 affected crypto holders now trapped in legal uncertainty.