According to Bitcoin.com, on July 31, the Hungarian Parliament voted to pass Act XXXVIII of 2026, which came into effect on August 7, abolishing the previous local requirement that cryptocurrency conversions must undergo verification checks to operate legally. The law also removed two cryptocurrency-related criminal offenses from the national criminal code: "abuse of crypto assets," punishable by up to five years in prison, and "providing crypto asset exchange services without authorization," punishable by up to eight years in prison. András Gaál, a lawyer at Schonherr, noted that these provisions conflicted with the principles of the EU internal market and overlapped with the MiCA framework, which fully took effect on July 1 of this year. Katalin Horváth, partner at CMS Budapest, stated that payment institutions, crypto asset service providers, and intermediaries previously subject to verification obligations should now proceed to dismantle these processes.
Hungary Aligns Crypto Regulations with the EU MiCA Framework
TechFlowShare
Summary
On July 31, Hungary’s parliament passed Act XXXVIII of 2026, aligning crypto exchange regulations with the MiCA (EU Markets in Crypto-Assets Regulation) framework. The law, effective August 7, 2026, eliminates verification requirements for crypto asset conversions and removes two criminal offenses related to crypto. These offenses, which conflicted with EU internal market rules, duplicated provisions already covered by MiCA, which fully applied on July 1, 2026. Legal experts advised payment institutions and service providers to update their procedures accordingly.
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