British fintech giant Revolut has temporarily suspended all cryptocurrency services in Hungary after the Hungarian government declared crypto transactions illegal. The suspension, announced on July 7, has halted all crypto trading and related services for users in the country.
Following the freeze of crypto accounts and investments, Hungarian Revolut users were unable to conduct any cryptocurrency transactions. The abrupt move led to a surge in customer inquiries.
On July 9, Revolut issued an official update, confirming the suspension and addressing concerns from affected users. The company said that it is closely monitoring the situation and will provide further guidance as legal and regulatory developments unfold.
Revolut Response on Frozen Crypto Accounts in Hungary
Revolut stated that due to changes in European Union (EU) regulation, the company has temporarily paused signing up new crypto customers in some countries. The company is aligning its standards with the Market in Crypto Assets (MiCA) standards under EU regulations, which is currently in progress.
While Revolut has paused new sign-ups to manage regulatory risks and align with local requirements during this transition, existing crypto service providers must meet new licensing and compliance standards.
When Will Revolut Continue its Services?
Any existing account in Revolut will not be affected by this change, as its users can continue using their usual accounts. All the money and crypto assets saved in existing accounts will remain safe and secure, as promised by Revolut. However, for new crypto accounts, Revolut has not mentioned any specific date. It stated–
“We plan to take on new crypto customers as soon as we receive our MiCA licence. Although we can’t give an exact date yet, we’re working closely with regulators to complete the process as quickly as possible.”
Revolut Progress in MiCA License
To continue its operations with high regulatory expectations — Revolut’s EEA crypto asset provider and Revolut Digital Assets Europe Ltd (RDAEL), a company registered with the Cyprus Securities and Exchange Commission (CySEC) — are actively working to obtain a MiCA license. The company assures to notify the customers about regular updates and further information, if they receive any from MiCA.
Final Thought
When Revolut first notified the customers about frozen accounts and pausing new sign-ups, it created chaos in Hungary. Industry leaders predicted their own answers and resolutions for the situation. Now, with the official response of Revolut, customers and crypto investors are somewhat relieved.
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