Recommendation No. 4/2026 (III.25.) of the Magyar Nemzeti Bank on procedures and regulations regarding crypto-asset transfer services under the Regulation on Markets in Crypto-Assets

Recommendation No. 4/2026 (III.25.) of the Magyar Nemzeti Bank on procedures and regulations regarding crypto-asset transfer services under the Regulation on Markets in Crypto-Assets

I. Purpose and Scope of the Recommendation

The purpose of this Recommendation is to formulate the expectations of the Magyar Nemzeti Bank (hereinafter: MNB) regarding the procedures and regulations – including client rights – related to crypto-asset transfer services provided by crypto-asset service providers acting on behalf of clients, thereby strengthening investor protection, increasing legal certainty, and facilitating the uniform application of relevant legislation.

The scope of the Regulation on Markets in Crypto-Assets and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937, dated May 31, 2023 (hereinafter: the Regulation), extends to natural and legal persons, as well as certain other enterprises, who or which participate in the issuance of crypto-assets, public offers relating to them, and their admission to trading, or provide services related to crypto-assets within the European Union.

By publishing this Recommendation, the MNB ensures compliance with the guidelines published by the European Securities and Markets Authority (hereinafter: ESMA) pursuant to Article 82(2) of the Regulation, concerning procedures and regulations for crypto-asset transfer services under the Regulation – including client rights – aimed at investor protection (ESMA35-1872330276-2032) 1.

The addressees of this Recommendation are crypto-asset service providers subject to the scope of Act VII of 2024 on the Markets in Crypto-Assets (hereinafter: Crypto Act), who provide crypto-asset transfer services on behalf of clients, as defined in Article 3(1)(26) of the Regulation (hereinafter: Provider).

This Recommendation does not fully refer to statutory provisions when formulating principles and expectations; however, the addressees of the Recommendation remain obliged to comply with relevant statutory requirements.

This Recommendation does not formulate guidance on data processing or data protection matters, contains no expectations regarding the processing of personal data, and the requirements contained therein cannot be interpreted in any way as authorization for the processing of personal data. Any data processing in connection with the fulfillment of supervisory expectations set forth in this Recommendation must be carried out in compliance with the then-current data protection statutory provisions.

This Recommendation applies without prejudice to the relevant provisions of Act CCXXXV of 2013 on Certain Payment Service Providers (hereinafter: Payment Services Act), insofar as they are applicable to relevant crypto-assets, particularly electronic money token transfers.

1 https://www.esma.europa.eu/sites/default/files/2025-02/ESMA35-1872330276-2032_Guidelines_on_transfer_services_for_cryptoassets_under_MiCA_HU.pdf

II. Interpretative Provisions

1. For the purposes of this Recommendation:
   1.1. provision of crypto-asset transfer services on behalf of clients: the concept defined in Article 3(1)(26) of the Regulation;
   1.2. crypto-asset service provider: the concept defined in Article 3(1)(15) of the Regulation.

2. In the absence of contrary provisions, the concepts used and defined in the Regulation and the Crypto Act shall have the same meaning in this Recommendation as they have in those instruments.

III. General Expectations

3. The MNB expects that the Provider shall design its procedures and regulations taking into account the expectations of this Recommendation.

IV. Expectations Regarding Regulations and Procedures Related to Crypto-Asset Transfer Services

IV.1 General Provisions Regarding Regulations and Procedures Applied During Crypto-Asset Transfers

4. The MNB expects that the Provider shall develop, implement, and maintain appropriate regulations and procedures – and appropriate tools within them – to ensure that the Provider makes available to the client in electronic format the information and conditions regarding crypto-asset transfer services in good time before concluding an agreement with the client for the provision of crypto-asset transfer services.

5. The information made available must contain at least the following elements:
   a) the name of the Provider, the address of its registered office, and any other address and contact method essential for communication with the Provider, including the electronic mail address; b) the name of the competent national authority responsible for the supervision of the Provider; c) a description of the main characteristics of the crypto-asset transfer service to be provided; d) a description of the rules and procedures for initiating or consenting to a crypto-asset transfer, as well as for withdrawing the mandate or consent, including the determination of the information that the client must provide in order for the crypto-asset transfer to be properly initiated or executed, including the method of authentication; e) the conditions under which the Provider may reject a mandate for crypto-asset transfer; f) a reference to the procedure or process by which the Provider determines the time of receipt of the mandate or consent for the crypto-asset transfer and any cut-off time established by the Provider; g) an explanation per crypto-asset regarding which distributed ledger technology network (hereinafter: DLT network) supports the transfer of the respective crypto-asset; h) the maximum execution time for the crypto-asset transfer service to be provided; i) for each DLT network, the reasonably estimated time or number of block confirmations required for the transfer to become irreversible on the DLT network, or, in the case of probability-based settlement, sufficiently irreversible, taking into account the rules and circumstances of the DLT network; j) all costs, fees, or commissions payable by the client in connection with the crypto-asset transfer service, including those related to the manner and frequency of providing or making available the information, and, where applicable, a breakdown of the amount of such fees; k) the communication tools accepted by the parties for forwarding information or notifications related to the crypto-asset transfer service, including basic information on technical requirements for the client's equipment and software (e.g., minimum required software or mobile operating system); l) the manner and frequency of providing or making available information related to the crypto-asset transfer service; m) the language or languages in which the agreement referred to in Article 82(1) of the Regulation is concluded, and in which communication takes place during the contractual relationship; n) a secure procedure for notifying the client in the event of suspected or actual fraud or security threats; o) the tools by which and the timeframes within which the client must notify the Provider of unauthorized or incorrectly initiated or executed crypto-asset transfers, as well as the Provider's liability for unauthorized or incorrectly initiated or executed transfers, including the maximum amount thereof; p) the client's right to terminate the agreement for the provision of crypto-asset transfer services, as well as the
   possible ways of termination.

6. The regulations and procedures regarding crypto-asset transfer services must ensure that the Provider provides the relevant information in easily understandable wording, in a clear and comprehensible format.

7. The MNB expects the Provider to ensure that the regulations and procedures referred to in point 4 also provide:
   a) that during the contractual relationship related to crypto-asset transfer services, the client is always enabled to access or receive, upon request, the agreement referred to in Article 82(1) of the Regulation and the information listed in point 5 of this Recommendation in electronic format; b) that the client is informed in good time of any changes to the information listed in point 5 before the changes become applicable.

8. It is expected that when providing a copy of the draft agreement referred to in Article 82(1) of the Regulation, the Provider shall be able to make the relevant information available.

9. As good practice, the MNB encourages the Provider, in designing the regulations and procedures referred to in point 4, to also pay attention to how it can make educational materials available to its clients to help them learn and better understand their rights, as well as the function and risks of crypto-asset transfers.

IV.2. Information Regarding Individual Crypto-Asset Transfers

10. The MNB expects that the Provider shall develop, implement, and maintain appropriate regulations and procedures – and appropriate tools within them – to ensure that, after receipt of the mandate for the crypto-asset transfer but before the execution of the crypto-asset transfer, the Provider provides the client with at least the following information:
    a) a short and standardized warning regarding whether the crypto-asset transfer will be irreversible or, in the case of probability-based settlement, sufficiently irreversible, and if so, when 2; b) the amount of fees payable by the client for the crypto-asset transfer, and, where applicable, a breakdown of the amount of such fees, distinguishing, for example, transaction fees (gas fees) charged by the relevant DLT network for the transaction and other fees charged by the Provider for its services.

11. The regulations and procedures referred to in point 10 must also ensure that the initiation or execution of the transfer does not take place before appropriate steps have been taken to ensure compliance with the Regulation on data accompanying transfers of funds and certain transfers of crypto-assets 3 (hereinafter: TFR Regulation), including its Article 14.

12. The MNB expects that the Provider shall develop, implement, and maintain appropriate regulations and procedures (and appropriate tools within them) to ensure that, after the execution of individual crypto-asset transfers, the Provider makes available to the client at least the following information:
    a) the name of the originator and the beneficiary; b) the distributed ledger address or crypto-asset account number of the originator; c) the distributed ledger address or crypto-asset account number of the beneficiary; d) a reference enabling the client to identify each crypto-asset transfer; e) the quantity and type of crypto-assets transferred or received;

2 Depending on the type of consensus algorithms associated with the relevant DLT network.
3 Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain transfers of crypto-assets and amending Directive (EU) 2015/849

f) the value date of debit or credit for the crypto-asset transfer; g) the amount of costs, fees, or commissions related to the crypto-asset transfer, and, where applicable, a breakdown of the amount of such fees.

13. It is expected that the regulations and procedures referred to in point 12 shall extend to the frequency of the information listed in point 12, the fees and costs charged for making the information available, and the manner of making the information available.

14. The information listed in point 12 must be made available in electronic format, and if the information is provided at most once a month, free of charge.

15. The MNB expects that the Provider shall develop, implement, and maintain appropriate regulations and procedures – and appropriate tools within them – to ensure that – without prejudice to other applicable regulatory requirements – in the event of rejection, return, or suspension of the crypto-asset transfer, the client receives at least the following information:
    a) the reason for the rejection, return, or suspension; b) the method of remedying the rejection, return, or suspension, where applicable; c) the amount of costs or fees borne by the client, and whether a refund is possible.

IV.3. Execution Times and Cut-off Times

16. It is expected that the Provider shall develop, implement, and maintain appropriate regulations and procedures at least regarding:
    a) the cut-off time for instructions for crypto-asset transfers, by which they are considered to have been received on the same working day; b) the maximum execution times depending on the crypto-asset transferred; c) for each DLT network, the reasonably estimated time or number of block confirmations required for the crypto-asset transfer to become irreversible on the DLT network, or, in the case of probability-based settlement, sufficiently irreversible.

IV.4. Rejection or Suspension of the Mandate for Crypto-Asset Transfer, or Return of Transferred Crypto-Assets

17. It is expected that the Provider shall develop, implement, and maintain appropriate risk-based regulations and procedures to determine whether to execute, reject, return, or suspend the crypto-asset transfer, and if so, how. These regulations and procedures must in particular take into account the relevant provisions of the TFR Regulation, as defined in Recommendation No. 8/2025 (VI. 26.) of the MNB on data reporting requirements related to money transfers and certain crypto-asset transfers 4.

4 The Recommendation ensures the transposition of the guidelines published by the European Banking Authority (EBA/GL/2024/11) regarding data reporting requirements related to money transfers and certain crypto-asset transfers under Regulation (EU) 2023/1113.

IV.5. Liability of the Provider

18. The MNB expects that the Provider shall develop, implement, and maintain appropriate regulations and procedures that determine the conditions of the Provider's liability towards clients in the event of unauthorized or irregularly initiated or executed crypto-asset transfers.

V. Final Provisions

19. This Recommendation is a regulatory instrument issued pursuant to Article 13(2)(i) of Act CXXXIX of 2013 on the Magyar Nemzeti Bank, which does not have binding force for supervised financial institutions. The content of the Recommendation issued by the MNB expresses the requirements imposed by laws, principles and methods recommended for application based on the MNB's law enforcement practice, as well as market standards and customs.

20. The MNB monitors and evaluates compliance with this Recommendation among the financial institutions under its supervision during its inspection and monitoring activities, in accordance with general European supervisory practice.

21. The MNB draws attention to the fact that the financial institution may incorporate the content of this Recommendation into its regulations. In this case, the financial institution is entitled to state that the provisions contained in its relevant regulations comply with the relevant Recommendation issued by the MNB. If the financial institution wishes to include only certain parts of the Recommendation in its regulations, it should avoid referencing the Recommendation and apply it only with respect to the parts transposed from the Recommendation.

22. The MNB expects the affected financial institutions to apply this Recommendation starting from October 1, 2026.

Mihály Varga signed
President of the Magyar Nemzeti Bank