What to know:
- Hungary repealed its crypto validation requirement to align national regulations with the EU’s MiCA framework.
- CoinCash became Hungary’s first MiCA-licensed crypto platform, preparing to gradually resume regulated digital asset services.
- Officials expect regulatory reforms to restore investor confidence and encourage crypto businesses back into Hungary.
Hungary has repealed its controversial policy that required crypto deals to be verified, marking a significant shift in the country’s regulations around cryptocurrencies.
The move sees Hungary align itself more closely with the Markets in Crypto-Assets (MiCA) regime adopted by the European Union. The move comes against the backdrop of CoinCash becoming the first entity to obtain a MiCA license in Hungary.
The Hungarian Parliament has introduced legislation to remove the mandatory validation by an independent party for some cryptocurrency operations, as well as the criminal code sections related to penalties for the misused cryptocurrencies and unlicensed exchange services.
The legislators claim that the validation requirement contradicted EU regulations. In other words, this modification removes an additional obligation but leaves other regulations intact.
Source: Wu Blockchain’s X Post
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Hungary Eases Crypto Regulations After MiCA Push
State Secretary for Parliamentary Affairs from the Ministry of Finance, Nikoletta Boda, declared that the validation requirement became operational on July 1, 2025. Within this structure, there was an obligation for every crypto-to-fiat and crypto-to-crypto exchange to declare conformity by a certified validator.
The validator had to authenticate wallet ownership, customer identification, and the source of the cryptocurrencies in order to proceed with the transactions. Violations of the rules also carried criminal penalties.
However, the regulation placed a burden on crypto projects. According to the Finance Minister Kármán András, the regulation turned out to have completely upset the crypto landscape in Hungary, leading to many crypto service providers having to stop their operations.
However, the market has now started returning to more stable times after the additional approval step was scrapped by the government.
This reversal is as a result of worries that Hungary has gone further beyond the EU minimum by having more stringent regulations.
While the MiCA framework allows member countries to adopt full compliance within July 2026, Hungary demands compliance by crypto asset services providers a year earlier, together with its validation process.
CoinCash Marks a New Chapter
The regulation change is expected as CoinCash, which operates from Budapest, prepares to resume operations, with its operator, Tiwala Solutions, having received the first MiCA license in Hungary from the National Bank of Hungary on July 20.
The license allows for providing services such as custody, exchange from crypto to fiat and vice versa, transfer, investment advice, and portfolio management.
During late 2025, the operations of CoinCash were suspended while completing the process of compliance rather than rushing. One of the co-founders of CoinCash, Gábor Galántai, referred to this authorization as a milestone for being the first Hungarian company authorized through MiCA.
What Happens Next
The decision by Hungary may draw more crypto companies into the fray or prompt them to apply for MiCA licenses, thus promoting competition and diversifying the range of regulated services in the digital asset space.
It remains to be seen which other companies are going to receive their license, how quickly CoinCash recovers, and what effect the regulatory change in Hungary will have on the crypto market in Europe.
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