Overview
- Parliament passed Act XXXVIII of 2026 to remove the 2025 validation regime and its criminal offences, and the law took effect on August 7, 2026.
- Two crimes tied to the validation system were repealed: 'Abuse of crypto assets' and 'Unauthorized crypto-asset exchange service provision', which had carried penalties up to five and eight years in prison in serious cases.
- The old rules had required covered crypto-to-fiat and crypto-to-crypto conversions to get a certificate from a licensed validator after checks such as origin-of-funds, wallet ownership and customer profiling.
- The repeal ends Hungary’s extra national layer on top of the EU’s Markets in Crypto-Assets rules, allowing firms with MiCA authorizations to rely on passporting instead of routing Hungarian conversions through local validators.
- Firms and intermediaries are now unwinding validator routing, assessing service resumptions for Hungarian customers, and the change follows political shifts and an EU compatibility inquiry that had questioned the earlier national rules.