Hungary Sets World’s Strictest Crypto Regulations
- Hungary enforces strict crypto regulations affecting market.
- Main assets include BTC, ETH, USDT.
- Revolut halts services in Hungary due to new laws.
This decision significantly alters Hungary’s financial landscape, with crypto services like Revolut and Bitstamp ceasing operations. The Hungarian National Bank (MNB) and Supervisory Authority for Regulated Activities are enforcing these new regulations.
The Hungarian National Bank has taken a significant step by implementing the most stringent cryptocurrency regulations globally. Crypto-asset service providers face potential prosecution for unlicensed operations. Revolut and Bitstamp have already withdrawn crypto services from Hungary, indicating market reaction.
“Revolut has stated in-app that all cryptocurrency services for Hungarian customers are suspended effective immediately.” – Revolut, Company Announcement
The regulation impacts Hungary’s cryptocurrency exchanges, affecting major coins like BTC and ETH. These rules demand rigorous compliance, with potential penalties including imprisonment. Unlicensed trading over 50 million HUF leads to criminal liability, heightening regulatory pressure on operators.
Community reactions reveal widespread confusion, with many Hungarians experiencing a compliance gray area. The legal ambiguity affects traders’ confidence and industry stability. Market liquidity has suffered, reflected in suspended services and reduced trading activity.
These regulations echo past actions in China and India, prompting concerns about potential capital flight and increasing informal trading activities. Historical precedents indicate potential shifts in crypto market dynamics and increased P2P engagements.
Monitoring these regulatory shifts, major platforms like Binance, Coinbase, and Kraken remain operational with EU-wide licenses, though vigilant of evolving compliance landscapes. The crypto asset landscape in Hungary navigates uncertain times as enforcement details evolve.
