Hungary lifts restrictions on cryptocurrency trading after market downturn
Hungarian authorities have decided to lift several restrictions on cryptocurrency transactions introduced in 2025 under Viktor Orbán's government. According to Bloomberg, government spokesperson Anita Kobol announced this. The easing of regulations is expected to restore market activity and improve the investment climate in the digital asset sector.
Tough Regulations for the Crypto Industry
In 2025, Hungarian authorities significantly tightened controls over the cryptocurrency sector. The new requirements required companies and investors to obtain permission from the Central Bank of Hungary to conduct cryptocurrency transactions. Furthermore, violations of the established rules were subject to criminal liability.
The stated goal of the restrictions was to protect the financial system and reduce the risks associated with money laundering and the illegal use of digital assets. However, crypto industry representatives have repeatedly stated that such measures create excessive administrative barriers for businesses.
Consequences for the Market
After the restrictions came into effect, the market experienced a noticeable decline in activity. Several major international cryptocurrency platforms have been forced to reconsider their operations in the country. In particular, the popular fintech service Revolut temporarily restricted cryptocurrency services to Hungarian users.
According to Anita Kobol, the previously introduced measures led to a reduction in digital asset trading volumes and negatively impacted the competitiveness of the local market. Many investors and companies chose to relocate their operations to other European jurisdictions with more favorable regulatory conditions.
The Impact of the European Union's Position
An additional factor in the legislative revision was the review by the European Union. Brussels examined the compliance of Hungarian restrictions with pan-European standards and principles for financial market regulation.
Amid the EU's desire to unify cryptoasset regulations, excessively strict national requirements could conflict with the overall policy of developing the digital economy. Therefore, the Hungarian authorities decided to adjust their approach and create a more balanced regulatory system.
New Prospects for Crypto Business
The lifting of restrictions could be an important signal for international cryptocurrency companies and investors. More flexible regulations could bring major players back into the market, increase trade volumes, and attract new investment to the Hungarian economy.
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