Revolut Resumes Limited Crypto Services in Hungary After Regulatory Pause

Revolut has partially resumed cryptocurrency services in Hungary, enabling users to withdraw funds and access staking rewards, following a regulatory pause triggered by the country’s stringent crypto law enacted on July 1. The UK-based digital bank had halted all crypto operations for Hungarian users in early July due to the new legislation, which imposes up to five years of imprisonment for individuals and eight years for businesses engaging in unlicensed crypto activities. By mid-July, Revolut restored limited functionalities, such as staking for over 30 supported tokens, allowing users to deposit, release, and earn rewards through its app. However, core services like buying, selling, or receiving cryptocurrencies remain suspended as the company awaits clarity on compliance with Hungary’s regulations and the EU’s Markets in Crypto-Assets (MiCA) framework [1]. Users can now transfer assets to external wallets and claim staking rewards, but trading restrictions persist, affecting their ability to engage in active crypto markets.

The partial resumption aligns with Hungary’s regulatory demands while maintaining a cautious approach to legal risks. Revolut’s decision emphasizes compliance with local mandates, which apply to platforms operating domestically regardless of their EU-wide licensing status. The firm’s director of customer communications confirmed, “You can now access your staking rewards and withdraw previously held tokens to external wallets. Buying, selling, and receiving new crypto deposits remains unavailable.” This strategic move reflects Revolut’s broader effort to navigate conflicting legal frameworks. While operating in over 30 countries and valued at $45 billion, the firm has sought MiCA approval through its European entity but faces uncertainties in reconciling these rules with Hungary’s national policies [1].

Hungary’s regulatory stance highlights broader challenges for multinational crypto platforms. The country’s punitive measures aim to protect consumers and enforce compliance but risk stifling innovation and driving crypto activity underground. Revolut’s focus on staking—while withholding transactional services—demonstrates a delicate balance between regulatory adherence and user engagement. Critics argue that the law’s severity could hinder market growth, while supporters view it as necessary for consumer protection. For Revolut, the situation in Hungary is part of a wider strategy to expand its global footprint while managing regulatory hurdles. The company has secured licenses in the UK, Lithuania, and India and recently launched Revolut X, a standalone crypto trading platform for UK users. Its ability to adapt to evolving regulations will be critical to sustaining growth in markets with divergent legal landscapes [1].

The incident underscores the tension between innovation and oversight in the crypto industry. Stricter regulations aim to ensure market stability but can inadvertently restrict user access and technological progress. Revolut’s incremental approach in Hungary—restoring staking while suspending core transactions—illustrates a strategic response to these challenges. The outcome will depend on how effectively the company navigates the regulatory maze and whether Hungary’s policies evolve to accommodate compliant crypto operations without stifling the sector’s potential [1].

Source: [1] [Revolut Restores Partial Crypto Services in Hungary After Regulatory Pause] [https://cryptonews.com/news/revolut-restores-partial-crypto-services-in-hungary-after-regulatory-pause/]