Supervisory Authority for Regulatory Affairs of Hungary (SARA) published new rules regarding cryptocurrencies on 27 October 2025. These concern the authorisation and registration of service providers validating crypto asset conversion.
In 2024 the act on the market of crypto assets came into force. One of the most important novelties was that crypto assets can only be converted into cash or other crypto assets on the basis of a statement of compliance issued by a service provider validating the conversion of crypto assets. This act caused turmoil among Hungarian crypto users, as many feared that the anonymity, that is one of the advantages of cryptocurrency, would be undermined by legislative measures. The service provider can deny the transaction if the validation process is not successful.
SARA had been tasked with overseeing the service providers validating crypto assets. Although the regulation on the technical steps of validation has not yet been drafted, the SARA has developed rules for the licensing of validation service providers. The regulation establishes exceptions to validation, meaning that, among other things, it is not necessary to validate transfers between own wallets for personal use, transactions on DeFi platforms, or services that are not considered to be regularly provided in exchange for consideration.
To obtain a validator service license, among other things, the following conditions must be met: (i) the company must have annual insurance coverage of up to HUF 250 million and (ii) registered capital of HUF 80 million, (iii) a certified information security management system, and (iv) company executives must have a good reputation.
According to industry experts, the "Wild West era" of cryptocurrencies is coming to an end, as transparency and financial security are becoming mandatory.
By Bálint Éberhardt, Attorney at Law, KCG Partners Law Firm
