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 Gábor Galántai 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
