Hungary has overturned its 2025 crypto law, eliminating prison sentences for unlicensed transactions and decriminalizing crypto trading. The move reverses strict regulations that had forced Revolut to suspend services and prompted an EU compliance probe. Pakistan's recent ban reversal shows similar regulatory shifts gaining traction in emerging markets this year.
Prison Terms for Trading Removed
High-value unlicensed crypto transactions previously carried 2-5 year prison sentences. Unlicensed service providers faced up to eight years behind bars. Those penalties no longer exist under the new framework.
Revolut's Services Remain Suspended
Revolut shut down Hungarian crypto operations last year due to compliance costs under the old rules. Users have been without the platform for months. The company hasn't announced when it might return despite the regulatory change.
EU Probe Still Active
The European Commission opened an inquiry into Hungary's noncompliance with bloc-wide regulations. The new government now plans to adopt the EU's MiCA framework and Estonia's regulatory model. The probe continues while these changes take shape.
Minister's Sharp Critique
Minister Zoltán Tanács called the previous law 'politically motivated' rather than a market safeguard. That's a stark contrast to the previous administration's position when the rules took effect last July.
Revolut's next move depends entirely on the final legislation. The company hasn't confirmed any timeline for restoring services in Hungary.
