Hungary has reportedly repealed its unique national rules on cryptocurrency asset conversions, aligning its framework with the European Union’s Markets in Crypto-Assets (MiCA) regulation. In late July 2026, the Hungarian Parliament adopted Act XXXVIII of 2026, formally titled legislation on the repeal of certain statutory provisions concerning crypto-asset conversion services.
The measure was promulgated in the official gazette and took effect on August 7, 2026.
It eliminates a distinctive Hungarian requirement that had obligated parties to obtain a compliance statement from a licensed local validating service provider before converting crypto-assets into fiat currency or other crypto-assets.
Under the previous regime, introduced through amendments linked to Hungary’s 2024 crypto-assets market act and effective from July 1, 2025, such conversions generally needed prior verification of the asset’s origin, wallet ownership, and the identities of the parties involved.
Without this validation certificate, the transaction was treated as unauthorized, legally ineffective, and potentially subject to criminal liability. Service providers were required to refuse non-validated conversions.
This layer of national oversight went beyond the harmonized standards set by MiCA and created practical barriers for exchanges and other providers operating in or serving the Hungarian market.
The repealed provisions also removed two specific offenses from the Criminal Code.
One concerned the abuse of crypto-assets, under which exchanging significant-value crypto-assets through an unauthorized service could lead to imprisonment of up to two years, rising to five years for particularly high-value cases.
The second addressed the unauthorized provision of crypto-asset exchange services in violation of the validation duty, carrying penalties of up to three years, or as high as eight years in aggravated circumstances.
These criminal sanctions had been unique to Hungary and contributed to market disruption, with several platforms suspending or limiting services.
Legal experts noted that the validation regime duplicated protections already provided under MiCA, which fully applies across the EU and establishes uniform licensing, conduct, and consumer-safeguard rules for crypto-asset service providers.
By removing the extra national step and associated criminal exposure, Hungary eliminates a source of friction with the EU internal market.
Crypto businesses that previously routed conversions through authorized validators can now simplify their processes, while users gain more straightforward access to services that comply with the bloc-wide framework.
The change reflects a broader policy adjustment.
Earlier national rules, introduced during a previous administration, had been stricter than MiCA’s baseline and prompted scrutiny from European institutions over potential conflicts with harmonized EU law.
The repeal leaves intact the core MiCA licensing and supervisory obligations administered by the National Bank of Hungary, ensuring continued oversight of authorized providers without the additional transaction-level certificate.
Early indicators suggest the domestic market is beginning to stabilize as the extra compliance burden disappears.
The legislative update streamlines Hungary’s approach, reduces legal uncertainty for market participants, and positions the country more consistently within the EU’s single regulatory environment for digital assets. As a result, service providers and users operating under MiCA authorization should see lower costs and fewer operational hurdles.