– Hungary’s new validation rules explained –

Revolut’s cryptocurrency service is back in Hungary, but many users were surprised when it—and several other providers—suddenly restricted crypto transactions.

What’s behind this?

These measures are not business strategy. They stem from amendments to Hungarian law introducing a new validation requirement, which places an extra layer of responsibility on providers whenever customers exchange crypto assets.

What exactly is validation?

Validation means verifying both the client’s identity and the specific transaction.

• It can only be performed by a provider licensed by Hungary’s Supervisory Authority for Regulated Activities (SZTFH).
• It remains unclear whether the exchange provider itself may perform this step or whether it must always be handled by an independent third party.
• The process ends with a compliance declaration—and without it, any exchange is deemed unlawful.

Some crypto assets may be exempt, but details are not yet known; the SZTFH president will determine the exact scope.
Importantly, validation is required for exchanges (whether into another cryptocurrency or into fiat money) but not for purchases.

New criminal offenses

Lawmakers have also amended the Criminal Code, creating two new crimes:

• Providing unauthorized crypto exchange services
• Misuse of crypto assets

Both are directly tied to missing validation. The first targets service providers, while the second can affect clients.
Notably, clients could face prison sentences—but only if the transaction exceeds 5 million forints and the violation is intentional.

What this means for users

For everyday crypto investors, the new rules mean paying closer attention. Clients should know:

• which providers are officially authorized to validate,
• how to ensure their transactions remain compliant, and
• what risks they run if they ignore the rules.

Bottom line

Hungary is making transparency and oversight in the crypto market a top priority—even at the cost of short-term confusion for both users and service providers.

For more information, please contact our expert, Andrea Belényi.