Hungary scraps crypto trading penalties of up to eight years in prison

Hungary has repealed its mandatory crypto conversion validation system and removed two related criminal offenses that exposed users and service providers to prison terms of up to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. Summary Hungary has removed mandatory validation checks for crypto conversions. Two crypto offenses carrying prison terms of up to eight years have been repealed. The rules took effect on Aug. 7 after Parliament approved the repeal on July 31. The changes remove a separate national compliance layer alongside the EU’s MiCA framework. The Hungarian Parliament passed Act XXXVIII of 2026 on the Repeal of Certain Statutory Provisions Concerning Crypto-Asset Conversion Services, removing a national validation requirement that had applied to crypto-to-fiat and crypto-to-crypto conversions. Approved by Parliament on July 31 and effective from Aug. 7, the legislation removes the validation process and associated criminal penalties after the rules created a separate compliance requirement for crypto businesses operating in Hungary. Under the previous system, covered crypto conversions had to pass through an authorized validation provider. Transactions completed without the required validation could qual...