Hungary implements the strictest encryption regulations in the world, and digital asset trading may be criminalized.

On July 14, according to Forbes, Hungary officially implemented one of the world's strictest cryptocurrency regulations on July 1, forcing several large fintech companies to suspend related services and potentially classifying the digital asset trading activities of hundreds of thousands of citizens as criminal. This significant policy change has sparked widespread chaos and concern in the fintech sector. London-based digital bank Revolut announced on Friday night, "We are temporarily suspending cryptocurrency services in Hungary effective immediately, until further notice." Revolut has over 2 million users in Hungary. The company stated that it is "working to restore services as soon as possible," but did not provide a specific timeline for restoration. This suspension covers all new cryptocurrency purchases, staking activities, and deposit operations; however, users can still sell existing holdings and transfer some tokens to external wallets. Other banking services offered by Revolut remain unaffected. The new Hungarian regulations introduce two new criminal offenses: "abuse of crypto assets" and "providing unauthorized crypto asset exchange services." According to Hungary's newly revised code, individuals using unauthorized cryptocurrency trading services may face up to two years in prison for the underlying trading activities; if the transaction amount exceeds 50 million Hungarian Forints (approximately 140,000 USD), the maximum prison term can reach three years; if it exceeds 500 million Forints (approximately 1.4 million USD), the maximum prison term can reach five years.