Hungary Repeals Strict Crypto Rules to Align With MiCA Framework
Hungary has repealed its strict crypto regulations to align with the European Union's Markets in Crypto Assets (MiCA) framework. The Hungarian parliament voted to repeal provisions requiring validation checks for crypto asset conversions, making it easier for EU exchanges to operate freely in Hungary.
The move eliminates duplicate compliance rules and removes offenses related to unauthorized crypto conversions, which previously carried penalties of up to eight years in prison. The repealed laws were unique to Hungary and clashed with the EU-wide MiCA framework, which ensures users can access safe crypto service providers.
Katalin Horváth, partner at CMS Budapest, stated that the Act was incompatible with the EU's internal market and was redundant with MiCA provisions. She emphasized that payment institutions and crypto-asset service providers should now unwind any processes routed to unauthorized validators.