Hungary Abolishes Crypto Asset Conversion Verification Requirements, Removes Up to 8-Year Prison Sentences to Align with EU MiCA

The Hungarian Parliament passed Act XXXVIII of 2026, abolishing legal provisions related to crypto asset conversion services, including verification requirements that European exchanges had to pass before operating legally in Hungary. The act was passed by vote on July 31 and implemented on August 7. The repeal simultaneously eliminates two crypto asset-related criminal offenses: unauthorized trading of high-value crypto assets, punishable by up to 5 years in prison, and providing crypto asset exchange services in violation of verification obligations, punishable by up to 8 years in prison. The relevant provisions were cited as duplicative of the EU MiCA framework.