Revolut has partially restored cryptocurrency services in Hungary after a temporary pause.
Revolut, a digital banking company headquartered in the United Kingdom, recommenced limited cryptocurrency operations in Hungary earlier this summer due to a regulatory halt.
The fintech firm now permits users to deposit, release, and earn staking rewards through its application, as indicated by a recent report from local news outlet Portfolio.hu.
The action resulted from Hungary’s new crypto law, which was implemented on July 1. This law penalizes individuals and businesses that provide crypto services without a domestic license, regardless of their registration in another EU country.
Hungary Issues a Threat of Up to 8 Years in Prison for Unlicensed Crypto Activity
Under Hungary’s new crypto law, individuals who provide or use cryptocurrency services without a local license may be sentenced to up to five years in prison.
Companies that engage in unlicensed crypto transactions may be subject to sentences of up to eight years, contingent upon the value of the transactions. Even platforms licensed in other EU countries are subject to the law.
In early July, in response, Revolut suspended all crypto services, including purchasing, selling, staking, deposits, and withdrawals.
By mid-July, users were granted access to withdrawals, which resulted in the reinstatement of some functionality. The most recent update has reinstated staking-related features, which provide users with limited engagement with over 30 supported tokens.
Despite this advancement, core services, including the purchasing, offering, and receipt of cryptocurrencies, continue to be unavailable. Additionally, there are limitations on the introduction of new cryptocurrency deposits.
Revolut is obtaining MiCA (Markets in Crypto-Assets Regulation) certification through its European arm. However, it is awaiting additional information regarding the compatibility of Hungary’s local regulations with the broader EU regulations. The country’s complete service is currently suspended until that time.
Revolut, which was established in 2015, has expanded to become one of the largest fintech companies in the world, with a workforce of approximately 10,000 and a client base of 55 million.
Revolut X, a standalone crypto trading platform, was launched in May last year to serve retail clients in the United Kingdom.
The company stated that the new platform was created to compete with prominent crypto exchanges by offering low fees and simple on/off-ramping at the time.
Despite its initial focus on professional traders, Revolut X is available on desktop for all UK users with a Revolut retail account.
Revolut Reports $4.1B Revenue and Maintains $45B Valuation
Last year, Revolut generated $4.1 billion in revenue and was last valued at approximately $45 billion.
CEO Nik Storonsky has acknowledged that the absence of complete banking licenses in major markets was a strategic oversight, even though a significant portion of this growth occurred.
Although Revolut has a restricted license in the United Kingdom and a full European banking license through Lithuania, the company obtains banking permissions in ten additional nations.
It has recently obtained a Prepaid Payment Instruments license in India and is preparing to commence operations in Mexico shortly.
Revolut is expanding beyond Europe to include the Nordics, the Middle East, Asia-Pacific, and southern Europe to fortify its status as a global financial platform.