Hungary has entered a new political era following the election on April 12, 2026, which saw opposition leader Péter Magyar and his pro-EU Tisza Party secure a decisive parliamentary majority. This shift marks the end of Viktor Orbán's 16-year tenure, raising the possibility of revisiting Hungary's stringent crypto regulations that have been in place since July 2025.

The implications of this political change are significant for the crypto industry, although the actual regulatory changes remain speculative at this stage. No formal announcements regarding a rollback of the existing crypto regulations have been made, and the newly elected Tisza-led government has yet to be officially established. However, the altered political landscape may set the stage for discussions around Hungary’s controversial crypto policies.

Key Developments

• Election Outcome: Péter Magyar’s Tisza Party achieved a parliamentary majority, effectively ending Orbán's rule.
• Crypto Regulations: Hungary's amended Crypto Act criminalized unauthorized exchange services and introduced a validation regime for crypto transactions.
• MiCA Conflict: The European Commission has initiated proceedings against Hungary's regulations, which may be resolved by the new government.
• Revolut's Position: The fintech giant has halted crypto services for its two million Hungarian users, raising concerns about capital flight.
• Uncertainty Remains: As of now, there has been no confirmed policy reversal or legislative timeline from the Tisza government.

Hungary's aggressive approach towards crypto regulation was solidified with amendments to its Crypto Act that became effective on July 1, 2025. This legislation introduced two new criminal offenses: “crypto abuse” and “unauthorized crypto exchange services,” both carrying penalties of up to two years in prison. However, legal interpretations suggest that these offenses primarily target large-scale unlicensed operations rather than individual users or small-scale activities.

The more impactful aspect of the legislation has been the introduction of a validation system requiring SARA-licensed certificates for all crypto-to-fiat and crypto-to-crypto exchanges conducted via domestic platforms. This regulatory framework has effectively positioned the state as a gatekeeper in the crypto market, favoring licensed entities and creating barriers for foreign platforms.

Notably, the UK-based fintech company Revolut, which serves over two million clients in Hungary, has completely suspended crypto buying, staking, and deposits since the regulation came into effect. There has been no indication of when these services might be reinstated, contributing to fears of capital flight from the country.

Should the Tisza Party take action to reverse these regulations, it would not be a straightforward process. The government would need to dismantle the SARA validation system, amend or repeal the criminal provisions, and engage in diplomatic discussions with the European Commission to resolve ongoing infringement proceedings. This involves navigating a complex sequence of legislative and regulatory actions.

The European Commission's infringement proceedings against Hungary's validation regime are based on the argument that the MiCA framework requires a harmonized approach to crypto-asset service regulation across EU member states. Hungary's SARA certification creates an incompatible national layer that could impede the unified regulatory landscape the MiCA aims to establish.

A government signaling alignment with EU regulations, as the Tisza Party's platform suggests, may be able to expedite the resolution of these infringement proceedings without requiring full legislative reform. This could potentially remove the validation requirements before addressing the criminal provisions.

In conclusion, while the political shift in Hungary creates an opportunity for revisiting the country’s crypto regulations, the path to meaningful change is fraught with complexities. The coming months will be crucial in determining how the new government approaches this pressing issue, as stakeholders in the crypto market watch closely for developments.

Source: Cryptonews News