Hungary has repealed a controversial policy that required independent verification of cryptocurrency transactions, marking a significant shift in the country's digital asset regulatory framework. The move brings Hungary closer into alignment with the European Union's Markets in Crypto-Assets (MiCA) regime, the bloc's landmark framework designed to harmonize crypto regulation across all 27 member states.

The policy change coincides with CoinCash, a Budapest-based crypto service provider, becoming the first entity to obtain a MiCA license in Hungary — a milestone that signals the country's transition from one of the EU's more restrictive crypto jurisdictions to a MiCA-aligned regime.

Legislative Changes

The Hungarian Parliament has introduced legislation removing the mandatory validation requirement by an independent party for certain cryptocurrency operations. The amendment also eliminates relevant criminal code provisions related to penalties for misused cryptocurrencies and unlicensed exchange services.

Lawmakers argued that the validation requirement contradicted EU regulations. The modification removes this additional obligation while leaving other regulatory measures intact.

Source: Wu Blockchain's X Post

Hungary Eases Crypto Regulations After MiCA Push

Nikoletta Boda, State Secretary for Parliamentary Affairs at the Ministry of Finance, stated that the validation requirement took effect on July 1, 2025. Under the framework, every crypto-to-fiat and crypto-to-crypto exchange was obligated to obtain conformity certification from a certified validator.

The validator was required to authenticate wallet ownership, verify customer identification, and confirm the source of the cryptocurrencies before transactions could proceed. Violations of these rules carried criminal penalties.

Finance Minister Kármán András acknowledged that the regulation had severely disrupted Hungary's crypto landscape, forcing many crypto service providers to suspend operations.

The market has begun stabilizing following the government's decision to eliminate the additional approval step. The reversal stems from concerns that Hungary had exceeded EU minimum standards by imposing more stringent regulations.

While the MiCA framework permits EU member states to achieve full compliance by July 2026, Hungary had required crypto asset service providers to comply a year earlier, coupled with its own validation process. This had placed Hungary among a subset of EU countries pursuing accelerated implementation, creating friction with the bloc's phased rollout approach under which MiCA provisions have been progressively taking effect since mid-2024.

CoinCash Marks a New Chapter

CoinCash is preparing to resume operations after its operator, Tiwala Solutions, received Hungary's first MiCA license from the National Bank of Hungary on July 20.

The license authorizes the provision of services including custody, crypto-to-fiat and fiat-to-crypto exchange, transfer, investment advice, and portfolio management — a broad scope that reflects the comprehensive service categories established under MiCA for crypto-asset service providers operating within the EU single market.

CoinCash suspended its operations in late 2025 to complete the compliance process rather than rushing to meet deadlines. Co-founder Gábor Galántai described the authorization as a milestone, noting that CoinCash is the first Hungarian company to be licensed under the MiCA framework.

What Happens Next

Hungary's regulatory shift may encourage additional crypto companies to enter the market or apply for MiCA licenses, potentially increasing competition and broadening the range of regulated digital asset services available.

Key questions remain regarding which other companies will receive licenses, how quickly CoinCash will recover operationally, and what broader impact Hungary's regulatory changes will have on the European crypto market. Hungary's experience also adds to the wider EU picture, where member states are at varying stages of MiCA implementation ahead of the July 2026 compliance deadline.