Hungary repeals crypto checks as first MiCA license is granted

cointelegraphPublished on 2026-07-29Last updated on 2026-07-29

Abstract

Hungary has repealed its strict national cryptocurrency validation requirement after parliament voted to scrap the rule, which had forced some service providers to halt operations. The move coincides with the National Bank of Hungary granting the country's first license under the EU's Markets in Crypto-Assets (MiCA) regulation to local platform CoinCash. The repealed rule, part of a 2024 law, mandated that a licensed validator verify details like asset origin and customer information for certain crypto conversions before issuing a compliance declaration. This added an extra layer of approval on top of MiCA requirements. Coupled with a shortened MiCA transition deadline, the regulatory environment led platforms like CoinCash to suspend services temporarily. Finance Minister Kármán András stated the previous regulations had disrupted the market but that recovery signs are now visible. With the validation step removed, broader licensing under MiCA remains. CoinCash, having received its MiCA authorization covering services like exchange and custody, plans to gradually resume and expand its offerings.

Hungary is rolling back strict crypto rules as CoinCash prepares to resume services after receiving authorization under the European Union’s Markets in Crypto-Assets (MiCA) regulation.

The Hungarian parliament voted to repeal the country’s crypto validator requirement, removing mandatory third-party approval for certain crypto transactions, the Hungarian tax and legal publication Ado.hu reported on Tuesday.

Finance Minister Kármán András said the government removed the validation requirement after the previous rules disrupted Hungary’s crypto market, prompting some service providers to halt operations in the country.

“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,” he wrote in a Tuesday Facebook post.

The development marks a significant shift in Hungary’s crypto sector, removing an additional approval step while leaving broader licensing and compliance requirements in place.

How Hungary’s crypto checks worked

Hungary introduced the requirement through its 2024 crypto assets law, creating a separate validation process for certain crypto conversions.

The rules, which took effect on July 1, 2025, required a licensed validator to verify details including the origin of crypto assets, wallet ownership and customer information before issuing a compliance declaration.

Related: Hungary to reverse crypto trading crackdown after EU scrutiny

The system added another transaction-level approval step alongside MiCA. Hungary also applied a shortened MiCA transition period for crypto asset service providers (CASPs), requiring compliance by July 1, 2025, compared with the EU’s maximum transition deadline of July 1, 2026.

The stricter regulatory environment prompted some crypto platforms to suspend services in Hungary, including Budapest-based crypto platform CoinCash, which voluntarily paused operations in December 2025 while pursuing MiCA authorization.

CoinCash receives Hungary’s first MiCA license

The National Bank of Hungary (MNB) granted CoinCash operator Tiwala Solutions authorization under the EU’s MiCA regulation on July 20, according to a company announcement reviewed by Cointelegraph.

“We’re the first and only Hungarian company authorised directly by the National Bank under the EU framework,” CoinCash co-founder said in a LinkedIn post on Friday.

Related: Unauthorized crypto trading now carries 2 years of prison in Hungary

The authorization covers custody, crypto-to-fiat and crypto-to-crypto exchange, transfers, investment advice and portfolio management.

CoinCash said it completed a months-long compliance review before receiving approval and paused operations while preparing to meet the requirements. The company plans to gradually resume services and expand beyond trading into additional MiCA-regulated offerings.

Magazine: The real reason DeFi projects that survived 2022 crash are shutting down now

Related Questions

QWhat specific crypto rule did Hungary recently repeal and why?

AHungary repealed the mandatory third-party validation requirement for certain cryptocurrency transactions. According to Finance Minister Kármán András, the previous rules disrupted the market and prompted some service providers to halt operations in the country.

QWhich company received Hungary's first MiCA license, and what services is it authorized to provide?

ACoinCash, operated by Tiwala Solutions, received Hungary's first MiCA license from the National Bank of Hungary (MNB) on July 20. The authorization covers custody, crypto-to-fiat and crypto-to-crypto exchange, transfers, investment advice, and portfolio management.

QHow did Hungary's 2024 crypto validator requirement differ from the EU's MiCA framework?

AHungary's 2024 law created a separate, transaction-level validation process requiring a licensed validator to verify details like asset origin and wallet ownership. This was an additional approval step *alongside* the broader MiCA licensing requirements. Hungary also imposed a stricter MiCA transition deadline of July 1, 2025, compared to the EU's maximum of July 1, 2026.

QWhat was the impact of Hungary's strict crypto regulations before the recent repeal?

AThe strict regulations, particularly the validator requirement, prompted several crypto service providers to suspend or terminate their services in Hungary. This included the Budapest-based platform CoinCash, which voluntarily paused its operations in December 2025 while pursuing MiCA authorization.

QWhat is the current status of CoinCash following its receipt of the MiCA license?

AFollowing its receipt of the MiCA license, CoinCash plans to gradually resume its services. The company stated it had completed a months-long compliance review and paused operations during preparation. It aims to expand beyond trading into other MiCA-regulated offerings.

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