Revolut Halts Crypto Services in Hungary Due to EU Regulations

Revolut, a prominent British fintech company, has temporarily halted all cryptocurrency services in Hungary following a sudden ban on crypto transactions by the Hungarian government. This suspension, effective from July 7, has brought all crypto trading and related services to a standstill for users in the country. The abrupt decision has led to a significant increase in customer inquiries as users found themselves unable to conduct any cryptocurrency transactions.

In response to the freeze on crypto accounts and investments, Revolut issued an official update on July 9. The company acknowledged the suspension and addressed the concerns of affected users, stating that it is closely monitoring the situation. Revolut assured users that it will provide further guidance as legal and regulatory developments unfold. The company attributed the suspension to changes in European Union (EU) regulations, specifically the Market in Crypto Assets (MiCA) standards, which are currently in progress. Revolut is aligning its standards with these new regulations to manage regulatory risks and comply with local requirements.

Revolut clarified that existing accounts will not be affected by this change, and users can continue to use their accounts as usual. All funds and crypto assets in existing accounts will remain safe and secure, as promised by the company. However, for new crypto accounts, Revolut has not provided a specific date for when services will resume. The company stated that it plans to take on new crypto customers as soon as it receives its MiCA license and is working closely with regulators to complete the process as quickly as possible.

Revolut's EEA crypto asset provider and Revolut Digital Assets Europe Ltd (RDAEL), registered with the Cyprus Securities and Exchange Commission, are actively working to obtain a MiCA license. The company has assured customers that it will notify them of any regular updates or further information received from MiCA. The initial notification from Revolut about frozen accounts and the pause on new sign-ups caused significant disruption in Hungary. Industry leaders offered their own predictions and resolutions for the situation. With Revolut's official response, customers and crypto investors have found some relief, although the situation remains fluid as regulatory developments continue to unfold.