Brussels launches legal action against Hungary over crypto law as Revolut and others shut down

The European Commission has initiated two new infringement procedures against Hungary. One concerns recent amendments to the country’s cryptocurrency legislation, while the other relates to Hungary’s failure to withdraw from the Energy Charter Treaty. In both cases, the government has received formal letters of notice and has two months to respond.

Crypto regulation prompts market exits

According to the Commission, the Hungarian Parliament amended the national crypto law in 2025, introducing a new licensing regime for so-called “crypto-asset conversion validation services”. The system also allows for criminal liability in certain cases.

Brussels argues that this framework is incompatible with the European Union’s Markets in Crypto-Assets Regulation (MiCA), adopted in 2023, which was designed to create a unified, directly applicable regulatory system for crypto markets across the EU.

MiCA aims to enhance legal certainty, protect consumers and investors, and strengthen financial stability. The Commission says the Hungarian rules instead created uncertainty in the market, prompting several service providers to suspend or discontinue parts of their operations. This has directly affected customers.

As a result, the Commission has sent Hungary a formal letter of notice. If the government’s response is deemed unsatisfactory, the procedure may escalate, potentially leading to a lawsuit before the Court of Justice of the European Union and financial penalties.

What happened before this:

• Breaking: Revolut suspends crypto services in Hungary today, another financial provider follows
• Legal crypto trading coming to an end in Hungary? Another major player leaves the crypto market