Market News

Crypto Services Halted: Revolut Faces Regulatory Challenges in Hungary

British fintech company Revolut has temporarily frozen all cryptocurrency services in Hungary following a government decree that prohibits crypto transactions.

This sudden suspension, announced on July 7, has left Hungarian users unable to trade or perform any crypto-related activities on the platform, prompting numerous inquiries from concerned customers.

In an official update on July 9, Revolut confirmed the freeze and reassured users that they are monitoring the evolving legal landscape closely.

The regulatory shift comes as Revolut adjusts its operations in line with the European Union's Market in Crypto Assets (MiCA) regulations, which aim to standardize crypto regulation across the EU.

While existing customers can continue using their accounts securely, Revolut has paused onboarding new crypto clients until they acquire the necessary MiCA license.

Revolut emphasized that the funds and crypto assets of current users remain safe during this transitional period.

However, the company has not provided a specific timeline for when new account sign-ups will resume, stating they are working persistently with regulators to expedite the licensing process.

The situation initially sparked chaos among users in Hungary, but Revolut’s communication has offered some degree of reassurance.

As the regulatory environment develops, the fintech giant is committed to providing regular updates to its customers regarding any changes related to their services.

This scenario underscores the ongoing challenges in the crypto industry as companies navigate varying national regulations while ensuring compliance.