Hungary abolishes cryptoasset conversion verification requirements, cancels maximum 8-year prison penalty in line with EU MiCA

According to news, the Hungarian Parliament passed “Act XXXVIII of 2026” to abolish legal provisions relating to crypto asset conversion services, including verification requirements that European exchanges must pass before they can legally operate in Hungary. The bill was passed by vote on July 31 and implemented on August 7.

This abolition simultaneously abolished two crimes related to crypto assets: unauthorised trading of high-value crypto assets is punishable by up to 5 years in prison, and providing crypto asset exchange services in violation of verification obligations is punishable by up to 8 years in prison. The relevant regulations are alleged to duplicate the EU MiCA framework.