Fintech 2026

HUNGARY Law and Practice Contributed by: Pál Rahóty, Lakatos, Köves & Partners

5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails In Hungary, payment processors are not legally required to use only existing payment rails (eg, card schemes, Single Euro Payments Area (SEPA), domes - tic clearing systems), but in practice they must oper - ate within the framework of recognised payment sys - tems and regulatory approval. If a fintech is licensed as a payment institution or e-money institution under PSD2, it may design inno - vative payment flows, but when funds move through the banking system, they must ultimately connect to recognised payment infrastructures (such as SEPA credit transfer, instant payment systems or card net - works). Access to these systems typically requires either (i) participation as a credit institution or (ii) indi - rect access via a sponsoring bank. Creating an entirely new “payment rail” (ie, a new pay - ment system or clearing and settlement system) is legally possible but would require compliance with EU and Hungarian rules on payment systems and settle - ment finality, and potentially authorisation as a system operator, with oversight by the MNB and, depend - ing on scale, the European Central Bank. In practice, this is complex and capital-intensive, so most fin - techs innovate at the application layer while relying on existing regulated infrastructures for clearing and settlement. 5.2 Regulation of Cross-Border Payments and Remittances In Hungary, cross-border payments and remittanc - es are regulated under the EU PSD2 framework (as implemented in Hungarian law), meaning providers must be licensed as a payment institution, e-money institution or credit institution, or act as an author - ised agent. Within the EU, services may be provided through passporting; outside the EU, local licensing or a compliant cross-border structure is generally required. Providers must also comply with transpar - ency rules on fees, FX margins, execution times and safeguarding of client funds.

The main regulatory focus areas are AML/CFT and sanctions compliance, which are particularly strict for cross-border flows. Firms must conduct customer due diligence, apply enhanced checks for high-risk jurisdictions, monitor transactions, screen against EU sanctions lists and report suspicious activity to the Hungarian Financial Intelligence Unit (FIU). The regula - tor also focuses on fraud prevention, consumer pro - tection, operational resilience (including ICT risk under DORA) and proper handling of correspondent banking and third-country risk exposure. In practice, AML and sanctions controls are the most compliance-intensive aspects for cross-border remittance providers. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms In Hungary, the permissible type of marketplace or trading platform depends on what is traded and how the platform operates, with different regulatory regimes applying. • Financial instrument trading platforms (securities, derivatives, security tokens): Platforms trading financial instruments fall under MiFID II/MiFIR and must be authorised as a regulated market, multilat - eral trading facility (MTF), organised trading facility (OTF) or investment firm. This involves MNB licens - ing, capital requirements, conduct rules and market transparency obligations. • Crypto-asset trading platforms: Crypto exchanges fall under MiCA and must be authorised as CASPs. If the crypto qualifies as a financial instrument (eg, a security token), MiFID II applies instead. • Payment and e-commerce marketplaces: General marketplaces are unregulated unless they hold funds or process payments, in which case PSD2/e- money rules apply unless a narrow exemption is available. • Crowdfunding platforms (lending or investment- based): Business lending or investment plat - forms fall under the EU Crowdfunding Regulation (ECSPR) and require specific authorisation, inves - tor disclosures and governance safeguards. This regime is lighter than MiFID but still supervised.

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