Hungary's parliament repeals crypto verifier requirement and 'Crypto Asset Abuse' laws to revitalize the market, while maintaining EU AML/KYC compliance.
Regulation & Gov ·
Hungary's parliament passed Bill T/305 on July 28, 2026, repealing a requirement that crypto transactions be verified by government-approved validators before execution. The vote passed 143-46 with one abstention. The repeal also eliminated 'Crypto Asset Abuse' laws introduced in 2025 that imposed sentences of up to two years for certain transactions and up to five years for higher-value transactions. Finance Minister András Kármán stated these rules had disrupted the market, prompting major operators including Revolut, eToro, and CoinCash to halt or limit Hungarian operations, resulting in an 80,000-person drop in active crypto traders.
The EU Commission initiated infringement proceedings against the prior crypto asset laws in early 2026 on grounds they conflicted with MiCA regulations. The new legislation does not remove or restrict existing anti-money laundering and know-your-customer compliance requirements under MiCA, maintaining EU standards for oversight. Supporters argue this positions Hungary as crypto-friendly while preserving regulatory compliance.
Critics contend the removal of transaction verification rules creates openings for money laundering and financing by terrorist groups or political entities. The extent to which crypto operators will return to the Hungarian market and whether the changes meaningfully accelerate adoption remain uncertain.