Starting from July 1, Hungary has introduced strict regulations for the cryptocurrency market, leading to significant consequences for fintech companies.
Impact of New Regulations on Fintech Market
Hungary's new regulations redefine the approach to cryptocurrency trading, imposing severe penalties for unauthorized activities. As a result of these changes, fintech company Revolut has suspended its services for over 2 million users in the country, affecting crypto purchases, staking, and top-ups, although users may only sell or transfer existing assets.
Community Response to Changes
The reaction to the new regulations has been intense. Revolut users and other market participants have expressed dissatisfaction regarding the service interruptions. Legal experts advise adapting to the new conditions, emphasizing the potential for market realignment under these regulatory demands.
> "This transitional period is more than just a buffer—it’s a strategic opening. It gives existing players the time to align with MiCA's demands, while offering new investors a window to position themselves ahead of full regulatory enforcement." — Ákos Mátés-Lányi, Partner, Taylor Wessing Hungary
Bitcoin Price Amid New Regulations
Despite the changes, Bitcoin's price remains steady. According to CoinMarketCap, its current price is $121,826.68, with a market cap of $2.42 trillion and a 24-hour trading volume of $108.52 billion. Over the past 60 days, Bitcoin's price has increased by 19.38%.
Coincu researchers suggest that these regulations could drive market consolidation, urging firms to swiftly meet compliance.
Hungary's new regulations on the cryptocurrency market open new horizons while also causing significant changes in the operations of fintech companies and the internal cryptocurrency ecosystem. Such changes reflect a trend towards stricter standards that could affect the global market.
