I thought that the University of Tokyo was quite strict regarding the cryptocurrency industry, but it turns out it’s a little brother compared to Hungary.

Forbes reports that Hungary has implemented the strictest cryptocurrency regulations in the world, which took effect on July 1st, leaving the fintech industry stunned. Many large companies have directly suspended their services, such as Revolut, which immediately halted its local cryptocurrency operations.

What makes these new regulations so harsh? They include two criminal offenses: using unauthorized services or operating unauthorized platforms, with light sentences of two years and heavier ones potentially reaching five years for large transaction volumes. The platform operators fare even worse, with serious cases facing up to eight years.

The key issue is that the law is vaguely written and lacks operational guidelines, which could potentially impact 500,000 cryptocurrency buyers. There’s a risk that even legitimate operations could lead to arrests. Regulatory authorities have stated that a compliance framework will be issued within 60 days, but so far there has been no indication of progress.

As a result, many companies are looking to flee. While global platforms might not be affected, local companies and investors are genuinely anxious. Everyone in the industry is waiting for an official clarification, but up to now, there’s been no word. Hungary's recent actions may lead to its isolation within the EU.