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Legal crypto trading coming to an end in Hungary? Another major player leaves the crypto market
Another major player is pulling out of Hungary’s crypto market just after Christmas. Kriptomat has announced that it will suspend its services in Hungary from 11:00 p.m. on 26 December 2024, further reinforcing a wave of withdrawals that has already swept away several international and domestic providers in recent weeks.
Tightening regulations, growing uncertainty
According to Kriptomat, the decision is driven by Hungary’s new regulatory requirements and the difficulties of fully complying with supervisory expectations, as reported by revb.hu. The company says that under the current conditions, it cannot complete the technical and legal transition required for lawful operation within the deadlines set by the authorities.
The move comes as a particularly heavy blow to Hungary’s crypto community, which has barely had time to recover from a series of recent exit announcements.
A domino effect in the crypto sector
Kriptomat’s decision is far from an isolated case. Over the past few weeks, a clear wave of withdrawals has taken shape in Hungary:
- Revolut: the fintech giant permanently shut down crypto trading for Hungarian customers on 18 December.
- eToro: with a deadline of 26 December, it is halting the buying and selling of real crypto assets in Hungary.
- CoinCash: one of the largest domestic players has also suspended its services and ATM network due to compliance issues.
Taken together, these moves send a clear signal: the current regulatory environment poses serious challenges for crypto service providers.
First validator appears – but too late?
A key development came on 19 December, when the first official validator entered the Hungarian market, theoretically creating the conditions for lawful and regulated operation. However, for Kriptomat and companies that had already announced their exit, this step came too late.
According to service providers, delays in introducing the validator system previously created such legal uncertainty that many international firms chose withdrawal over the risk of hefty fines. Building the necessary technical infrastructure and a fully compliant operational framework requires more time than the authorities’ deadlines allow.
The role of the SZTFH in the withdrawal wave
At the heart of the situation lies the strict framework imposed by the SZTFH (Supervisory Authority for Regulated Activities). While the stated aim is to improve market transparency and security, the handling of the transition period has generated significant tension.
Based on experience so far, the rapid rollout of regulation combined with delays in the validator system has created an environment in which several providers have opted to leave the Hungarian market, either temporarily or for good.
Featured image: Pixabay
So Hungary is against MiCA regulation completely?
Why?
Anyone else remember a brand of toilet paper sold decades ago in Hungary called “Crypto”. It was made out of recycled printed paper and you could see some print letters from the paper it was made from. It was a strange experience cleaning yourself with something that felt like wax paper. It must have been a Russian import.