Revolut exits Hungarian fintech sector due to strict regulation
Back in July, Revolut took a drastic step in Hungary, triggered by stringent local regulations. Yesterday, news broke that customers can once again access their cryptocurrencies via Revolut, but this relief is fleeting and comes with tight restrictions. Users must now part ways with the digital assets stored there, which experts estimate to be worth hundreds of millions of forints (hundreds of thousands of euros).
Revolut’s unforeseen move
According to a report on revb.hu, the change has come as a cold shock to Hungarian users, though it is not entirely without precedent. As previously reported, in July the company unexpectedly halted crypto services for its Hungarian clients and froze their digital assets. This was due to new domestic and international laws requiring certain permits, and the company insisted on full legal compliance.
Fintech expert Ádám Kovács notes that crypto holdings worth several hundred million forints have become stuck in Hungary. On 23 October, Revolut’s Cyprus subsidiary received a MiCA licence, yet trading has not resumed. Local regulations mean that from 6 December Revolut has only allowed Hungarian customers either to transfer their crypto to an external wallet or to sell it. This also comes with a strict deadline: decisions must be made well before Christmas.
End of the road in Hungary
The letter currently being sent to customers highlights that the service provider will cease all cryptocurrency activities in Hungary. Buying new crypto, earning crypto through “Learn & Earn” programmes, or depositing crypto into a Revolut account is already no longer possible. Additionally, new staking of assets has been suspended.
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Unstaking will be automatically completed by Revolut by 10 December, with the process expected to take a few days. By mid-December, according to revb.hu, all staking commitments will have ended.
Key deadline: 18 December
The critical cut-off is 18 December. Until then, customers must decide what to do with the crypto balances on their accounts. They may sell them for fiat currency — euros or forints, for example — or withdraw them by transferring to an external wallet. If no action is taken, the company will sell the crypto at the prevailing market rate and credit the funds to the account, although this may not be the most favourable outcome.
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