Crypto news

The Hungarian parliament has adopted a decision that could significantly change the regulatory landscape for digital assets in the country. From now on, mandatory third-party due diligence for crypto asset exchange transactions is abolished. This means that market participants are no longer required to engage independent auditors or third parties to verify each transaction.

A key aspect of the reform is the removal from legislation of provisions that imposed criminal liability for providing cryptocurrency exchange services without undergoing such checks. Previously, these requirements created significant barriers to market entry and increased operational costs for legitimate players.

What will change in practice

The new law will come into effect eight days after its official publication. In practice, this means that within the coming weeks, Hungarian crypto services will be able to operate in a more flexible legal framework. The abolition of mandatory compliance does not mean a complete abandonment of oversight—rather, it is a shift towards a more risk-based approach, where the burden of verification falls on the companies themselves.

This move by Hungary contrasts with the tightening of requirements in several other EU jurisdictions, where pressure on the crypto industry is increasing as part of the implementation of MiCA. Budapest appears to be choosing a strategy of attracting crypto businesses by reducing the regulatory burden.

My analysis: This decision is a clear signal to the market. Hungary aims to become a crypto hub in Central Europe, using simplified procedures as a competitive advantage. However, investors should remember that the abolition of mandatory checks does not eliminate the need for their own audits. In an environment of reduced state control, the integrity of counterparties becomes even more critical. The market will undoubtedly benefit from reduced bureaucracy, but the risks of fraud may temporarily increase.