Hungary Scraps Crypto Conversion Penalties, Aligns with EU MiCA Rules
Hungary has repealed its mandatory crypto conversion validation system and removed two related criminal offenses that exposed users and service providers to prison terms of up to eight years.
The repeal, which took effect on August 7, was approved by the Hungarian Parliament on July 31 as part of Act XXXVIII of 2026. This legislation removes a national validation requirement that had applied to crypto-to-fiat and crypto-to-crypto conversions.
Under the previous system, covered crypto conversions had to pass through an authorized validation provider. Transactions completed without the required validation could qualify as unauthorized crypto transactions under Hungary's criminal law.
The repeal completes a reversal of the country's 2025 crypto crackdown, which created regulatory uncertainty for exchanges and other service providers. Firms serving Hungarian customers now no longer need to route covered conversions through the separate national validation system.