Viktor Orbán Steps Down, Ending 16 Years in Power; Hungary’s Crypto Industry Sees a Policy Reversal

The Tisza Party (Tisza), led by Hungarian opposition leader Péter Magyar, won a decisive victory in the parliamentary election, ending Viktor Orbán’s 16-year rule. The strict “verification” system and criminal penalty mechanisms implemented by the Orbán government are widely viewed as going beyond the EU’s coordinated framework under the Markets in Crypto-Assets Regulation (MiCA), and are expected to be repealed after the new pro-EU government takes office.

Election Results and Political Shift: The End of a 16-Year Reign

Tisza’s victory is widely seen as one of the most historically significant political turning points in Hungary in recent years. Early predictions showed that Tisza would secure an absolute majority of seats in parliament, and Orbán is reported to have conceded defeat. Political analyst Ian Bremmer characterized the result as a “historic victory for the people of Hungary.”

EU Commission President Ursula von der Leyen also publicly said she expects to rebuild a relationship of coordination and alignment with EU institutions, stating, “Tonight, the heart of Europe is beating even stronger in Hungary.” This remark directly points to the years-long tensions between Hungary and Brussels over the rule of law and economic policy, which are expected to be fully normalized under the leadership of the new government.

Hungary’s Crackdown on Crypto: Controversial Rules Beyond the MiCA Framework

During Orbán’s time in power, Hungary’s financial regulator implemented a strict “verification” system requiring all cryptocurrency exchanges to obtain special certification, with criminal penalties for those who fail to comply. Legal observers and industry participants believe these measures go far beyond the scope of members’ obligations set by MiCA. The European Commission has brought infringement proceedings against Hungary over the additional restrictions mentioned above, becoming a rare precedent of the EU taking legal action due to a member state’s overreaching crypto regulation.

Key Controversies in Hungary’s Crypto Regulation During the Orbán Era

“Verification” Thresholds: Exchanges must obtain special certification to operate legally; the certification process is cumbersome and carries high administrative costs

Criminal Penalty Mechanism: Acts that fail to meet the verification requirements may face criminal prosecution, far exceeding the framework of administrative sanctions under MiCA

EU Infringement Proceedings: The European Commission has determined that the relevant provisions are incompatible with MiCA and has formally initiated legal procedures

Revolut Pauses Services: Global fintech platform Revolut paused its Hungarian crypto services during its crackdown action in 2025

Industry Impact: Revolut May Return, and the MiCA Unification Process Accelerates

(Source: Polymarket)

The new pro-EU stance of the government brings three layers of predictable impacts. First, the “verification” regime and related criminal penalties are expected to be abolished, which would resolve the infringement proceedings with the European Commission and restore regulatory clarity for crypto businesses operating in Hungary. Second, platforms such as Revolut that paused Hungarian services due to regulatory barriers are expected to re-enter the market once institutional obstacles are removed. Third, unilateral expansionary regulatory policies beyond the MiCA framework—one of the EU’s most representative cases—are set to collapse with the change of government, strengthening the overall progress of the EU in promoting a unified digital assets market and reducing pressure on other member states to set up their own local rules.

Worth mentioning is that traders on the prediction market Polymarket previously bet millions of dollars that Orbán would not win; as the result was revealed, those bets were validated as forward-looking market judgments.

Frequently Asked Questions

How Will Viktor Orbán’s Departure Affect Crypto Regulation in Hungary?

The “verification” system and criminal penalty mechanisms led by the Orbán government are widely considered to go beyond the MiCA coordination framework, and the European Commission has brought infringement proceedings. The new pro-EU government is expected to repeal these overreaching measures, restore compatibility with MiCA, and resolve the existing legal disputes within the EU.

What Is MiCA, and Why Do Orbán’s Policies Conflict With It?

MiCA (Markets in Crypto-Assets Regulation) is the EU’s unified regulatory framework for crypto-assets, designed to establish consistent rules for all member states. On top of MiCA, Hungary introduced additional local “verification” rules and criminal penalties. The European Commission believes these measures are incompatible with MiCA’s coordination principles and has formally initiated infringement proceedings.

Will Revolut Return to Hungary’s Crypto Market?

Revolut suspended local crypto services during the Hungarian crackdown in 2025. If the new government abolishes the overreaching regime as expected, platforms such as Revolut could re-enter Hungary’s market, but the specific timeline depends on how quickly the relevant regulations are amended and on the compliance assessments of the businesses.