Hungary has repealed its controversial crypto transaction validation requirement, easing one of the country’s strictest digital asset rules just as CoinCash becomes the first Hungarian company to secure authorisation under the European Union’s Markets in Crypto-Assets (MiCA) framework.
The Hungarian parliament voted to eliminate mandatory third-party validation for certain cryptocurrency conversions, removing an additional compliance layer that industry participants said had disrupted the country’s crypto market.
Hungary Reverses Strict Crypto Validation Rules
Hungary introduced the validation system through its 2024 crypto assets legislation, with the requirements taking effect on 1 July 2025.
Under the framework, certain cryptocurrency conversions required approval from a licensed validator. The validator was responsible for checking information such as the origin of digital assets, wallet ownership and customer details before issuing a compliance declaration.
This effectively created an additional transaction-level verification process on top of the requirements imposed by MiCA.
Hungary also adopted a significantly shorter MiCA transition period than the maximum permitted under EU rules, requiring crypto asset service providers to comply by 1 July 2025, rather than using the longer transition period available at the European level.
Strict Rules Disrupted Hungary’s Crypto Market
The additional regulatory burden contributed to uncertainty across Hungary’s digital asset industry, with several crypto businesses reducing or suspending services.
Finance Minister Kármán András said the government decided to remove the validation requirement after recognising the disruption caused by the previous framework.
According to Kármán, several market participants had terminated cryptocurrency-related services in Hungary because of the regulatory environment, although he said the sector was beginning to show signs of recovery.
The repeal does not eliminate crypto regulation in Hungary. Companies will still need to comply with broader MiCA licensing, customer protection and regulatory requirements, but individual transactions will no longer face the additional Hungarian validator process.
CoinCash Receives Hungary’s First MiCA Licence
The regulatory shift comes as Budapest-based crypto company CoinCash prepares to restart operations after receiving MiCA authorisation.
Hungary’s central bank, the Magyar Nemzeti Bank (MNB), granted authorisation to CoinCash operator Tiwala Solutions on 20 July, making it the first Hungarian company directly authorised by the central bank under the EU framework, according to the company.
CoinCash had voluntarily suspended operations in December 2025 while working towards regulatory approval.
Licence Covers Wide Range of Crypto Services
The MiCA authorisation allows CoinCash to provide several regulated digital asset services, including crypto custody, crypto-to-fiat exchange, crypto-to-crypto trading, asset transfers, investment advice and portfolio management.
The company said it underwent a months-long compliance review before receiving approval and plans to gradually restore its services.
CoinCash also intends to expand beyond its previous trading operations by introducing additional products permitted under its MiCA authorisation.
Hungary Moves Towards a MiCA-Led Crypto Framework
The two developments signal a broader change in Hungary’s approach to digital asset regulation.
Rather than maintaining a separate transaction-validation regime alongside European rules, Hungary is moving towards greater reliance on MiCA as the primary regulatory framework for crypto businesses.
For crypto companies, removing the additional validation requirement could reduce operational friction, while CoinCash’s approval provides an early example of how locally regulated platforms can operate under the EU-wide MiCA regime.
The combination of lighter domestic transaction requirements and formal MiCA licensing could help revive Hungary’s crypto market after a period in which regulatory uncertainty pushed some providers to suspend or withdraw services.
