Hungary repeals crypto validator rule, hands CoinCash first MiCA license

Hungary’s parliament voted 143-46 to repeal the country’s mandatory crypto transaction validator, just days after Budapest-based exchange CoinCash became the first Hungarian firm licensed under the EU’s MiCA framework.

Hungary has taken a significant step toward rebuilding its digital asset industry after lawmakers voted to remove one of the country’s most controversial crypto compliance requirements, just days after local exchange CoinCash secured the nation’s first authorization under the European Union’s Markets in Crypto-Assets (MiCA) framework.

The twin developments—abolishing mandatory third-party validation for certain crypto conversions and granting CoinCash a MiCA license—suggest that Hungary is now aligning more closely with the European Union’s harmonized regulatory framework while attempting to restore confidence among crypto service providers.

Hungary removes extra crypto validation layer

Hungarian lawmakers voted to repeal the country’s mandatory crypto validator requirement, according to Hungarian tax and legal publication Ado.hu. The measure removes the obligation for certain cryptocurrency transactions to undergo approval by an independent licensed validator before they could proceed.

The rule was originally introduced under Hungary’s 2024 crypto assets legislation and came into force on July 1, 2025. It required a licensed validator to confirm the origin of crypto assets, verify wallet ownership, review customer information, and issue a compliance declaration before specific crypto-to-fiat or crypto-to-crypto conversions could be completed.

Unlike the broader MiCA framework adopted across the European Union, Hungary’s system imposed an additional transaction-level compliance layer that many market participants viewed as unnecessarily burdensome.

Finance Minister Kármán András acknowledged that the policy had unintended consequences for the domestic crypto sector.

“Due to the negative and market-shaking regulations so far, many players have terminated their services related to cryptocurrencies in Hungary, but the market is now showing signs of recovery,” András wrote in a Facebook post announcing the government’s decision.

The revised Hungary crypto regulation removes this additional validation requirement while maintaining existing licensing, anti-money laundering (AML), and regulatory obligations that apply under MiCA.

The policy reversal follows growing criticism that Hungary’s implementation of crypto rules had become stricter than those required under EU law.

Stricter rules had forced platforms to pause operations

Hungary had already distinguished itself from many European Union member states by implementing a much shorter transition period for crypto asset service providers (CASPs).

While MiCA allows member states to grant transition periods until July 1, 2026, Hungary required firms to become fully compliant by July 1, 2025—one year earlier than the maximum EU deadline.

Combined with the mandatory validator system, the accelerated timeline created significant operational challenges for domestic crypto businesses.

One of the highest-profile examples was Budapest-based CoinCash, which voluntarily suspended its services in December 2025 while seeking full authorization under MiCA.

The tougher Hungary crypto regulation environment was widely seen as discouraging investment and reducing competition within the country’s digital asset market, with several providers either exiting Hungary or putting expansion plans on hold.

The European Union designed MiCA to establish a consistent regulatory framework across all member states, replacing fragmented national approaches with unified licensing, consumer protection standards, and operational requirements.

European Securities and Markets Authority (ESMA) Chair Verena Ross has previously described MiCA as an important milestone for creating a safer and more integrated European crypto market, emphasizing that harmonized regulation strengthens investor protection while supporting innovation.

CoinCash becomes Hungary’s first MiCA-licensed crypto company

The regulatory easing coincides with another milestone for Hungary’s digital asset industry.

The National Bank of Hungary (MNB) granted Tiwala Solutions, the operator of CoinCash, authorization under the European Union’s MiCA regulation on July 20, making it the first company in the country to receive direct approval under the framework.

CoinCash co-founder Gábor Galántai welcomed the approval in a LinkedIn post.

“We’re the first and only Hungarian company authorised directly by the National Bank under the EU framework,” Galántai said.

The authorization allows CoinCash to provide a broad range of regulated crypto services, including digital asset custody, crypto-to-fiat exchange, crypto-to-crypto trading, asset transfers, investment advice, and portfolio management.

According to the company, obtaining the license followed months of regulatory reviews, compliance assessments, and operational preparations designed to satisfy MiCA’s extensive requirements.

CoinCash said it intentionally paused operations while completing the authorization process and now intends to gradually restore its services before expanding into additional MiCA-regulated products.

The first MiCA authorization represents an important milestone for the evolving Hungary crypto regulation landscape, demonstrating that local firms can successfully meet Europe’s unified licensing standards.

Hungary signals a more balanced crypto future

Taken together, the repeal of the validator requirement and CoinCash’s regulatory approval indicate that Hungary is recalibrating its approach to digital asset oversight.

Rather than imposing national requirements beyond MiCA, policymakers appear increasingly focused on aligning domestic rules with the European framework while maintaining investor safeguards.

Industry observers have long argued that regulatory certainty is one of the most important factors influencing where crypto companies choose to establish operations. Clear licensing pathways and consistent compliance standards reduce uncertainty for businesses while improving consumer protection.

European Commissioner Mairead McGuinness, who played a leading role in advancing MiCA legislation, has previously said the framework was designed to provide legal certainty for crypto markets while protecting consumers and supporting financial stability.

The latest Hungary crypto regulation reforms could encourage additional crypto firms to reconsider the Hungarian market after months of uncertainty. They may also strengthen Hungary’s position within Europe’s increasingly unified digital asset ecosystem as MiCA continues to reshape the regulatory landscape across the EU.

With CoinCash preparing to restart operations and lawmakers removing one of the country’s most criticized compliance measures, Hungary appears to be entering a more pragmatic phase of crypto oversight. Whether these reforms are enough to attract new investment and rebuild industry confidence will become clearer in the months ahead, but the direction of travel is becoming increasingly evident.

As Europe continues implementing MiCA, the evolving Hungary crypto regulation framework may serve as an example of how national governments can adjust domestic policies while remaining aligned with the EU’s broader vision for digital asset markets.