Hungary abolishes the verification requirements for cryptocurrency asset conversions and removes the maximum 8-year imprisonment penalty to align with the EU MiCA

The Hungarian Parliament passed Bill XXXVIII of 2026, which abolishes legal provisions related to cryptocurrency asset conversion services, including the verification requirements that European exchanges must pass to operate legally in Hungary. The bill was voted on and passed on July 31 and came into effect on August 7.

This abolition simultaneously cancels two charges related to cryptocurrency assets: unauthorized trading of high-value cryptocurrency assets can result in a maximum of 5 years in prison, and violating verification obligations when providing cryptocurrency exchange services can result in a maximum of 8 years in prison. The relevant provisions were criticized for overlapping with the EU MiCA framework.