Manimama's experts are well versed in the complexities of cryptocurrency regulation and are committed to sharing their findings with businesses and individuals navigating this dynamic sector.
Indeed, our legal team recently finalized a comprehensive study on the national implementation of the Markets in Crypto-assets Regulation (MiCA) in various EU countries. The legal research not only highlights the differences in how MiCA is adopted at the national level, but also offers standard rules for compliance. Today we offer you an insight into the specifics of obtaining a cryptocurrency license in Hungary under the new MiCA provisions.
Current requirements (prior to MiCA implementation)
VASPs are only required to comply with the minimum AML-related requirements if they are based in Hungary or serve customers in Hungary. To fulfill its AML obligations, a VASP must:
- Demonstrate compliance with AML legislation by submitting its internal AML documentation to the PTEI.
- Provide information about the employee who will act as the AML officer, including his/her name, position in the company, and contact details.
Has the jurisdiction enacted a law/draft law implementing MiCA?
Who is the regulator under the law/draft law implementing MiCA?
Requirements for future CASPs stipulated by the national legislation implementing MiCA, the presence of national peculiarities
- The crypto asset service provider shall pay a supervision fee to the MNB.
- The crypto asset service provider must ensure that the customers are able to communicate any complaints about the service provider’s behavior verbally, on the phone, in writing, by post, or by electronic mail. The crypto-asset service provider shall keep the complaint and the response to it for five years and shall present it at the request of MNB. The crypto asset service provider is obliged to designate a contact person responsible for consumer protection matters and to notify MNB in writing of the responsible person or any change thereof within 15 days.
- The crypto-asset service provider providing advice on crypto-assets ensures that the natural person acting on its behalf providing advice and information has the necessary knowledge and professional experience to provide the advice, which detailed rules of the criteria system of knowledge and professional experience are determined by the government decree.
The period of time by which the CASP must comply with the new requirements, as well as the procedure for notifying the regulator of compliance with the new requirements
A crypto-asset service provider that is already operating at the time this law enters into force and that issues crypto-assets other than asset-based tokens or electronic money tokens must comply with the requirements set out in MiCAR from January 1, 2025 at the latest.
Is there a transition period before the full implementation of MiCA?
There is no transition period.
The ability of a CASP from a jurisdiction with a transition period to operate freely in a jurisdiction without a transition period starting from January 1, 2025.
These provisions have not yet been adopted.
Liability provided for CASPs that continue to operate at the place of registration without meeting the new requirements
In the event of a breach of authorization requirements laid down in MiCAR, MNB can impose the following fines:
– in the case of a natural person – a maximum of HUF 259,644,000;
– in the case of a legal person – a maximum of HUF 1,854,600,000:
(a) in the event of a breach of the provisions listed in Article 111 (1) (a) MiCAR, not more than 3% of the annual turnover according to the annual accounts last approved by the decision-making body;
(b) in the event of a breach of the provisions listed in Article 111 (1) (d) MiCAR, not more than 5% of the annual turnover according to the annual accounts last approved by the decision-making body;
(c) in the event of a breach of the provisions listed in Article 111 (1) (b) and (c) MiCAR, not more than 12,5% of the annual turnover according to the annual accounts last approved by the decision-making body.
Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
