Hungary is walking back its stringent cryptocurrency regulations as Budapest-based exchange platform CoinCash prepares to resume operations after becoming the first company authorized under the European Union's Markets in Crypto-Assets (MiCA) framework, the bloc's landmark regulatory regime designed to create a unified rulebook for crypto-asset service providers across all 27 member states.

The Hungarian Parliament voted to repeal the country's crypto validator requirement, eliminating the mandate for third-party approval on certain crypto transactions, according to a Tuesday report by the Hungarian tax and legal publication Ado.hu.

Finance Minister Kármán András said the government decided to scrap the validation requirement after the previous rules disrupted Hungary's crypto market and led several service providers to suspend 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," András wrote in a Tuesday Facebook post.

The repeal removes an extra layer of transaction-level approval while leaving broader licensing and compliance obligations intact. By eliminating the validator requirement, Hungary moves closer to alignment with the standardized MiCA framework rather than maintaining a stricter national regime on top of it.

How Hungary's crypto validation system worked

Hungary introduced the validator requirement through its 2024 crypto assets law, which established a separate validation process for certain crypto-to-fiat conversions.

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

The system layered an additional transaction-level approval on top of MiCA — a burden no other EU member state imposed. Hungary also adopted a shortened MiCA transition period for crypto-asset service providers (CASPs), requiring full compliance by July 1, 2025 — a full year ahead of the EU's maximum transition deadline of July 1, 2026.

The tighter regulatory climate led several crypto platforms to suspend services in Hungary. Among them was CoinCash, which voluntarily paused operations in December 2025 while pursuing MiCA authorization.

CoinCash becomes Hungary's first MiCA-licensed firm

The National Bank of Hungary (MNB) granted authorization to CoinCash operator Tiwala Solutions 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.

The authorization spans custody services, crypto-to-fiat and crypto-to-crypto exchange, transfers, investment advice, and portfolio management. Under MiCA, CASPs licensed in one EU member state can passport their authorization to offer services across the bloc, meaning CoinCash's Hungarian license could serve as a gateway to broader European markets.

CoinCash stated that it completed a months-long compliance review before receiving approval, having paused its operations during the preparatory period. The company plans to gradually resume services and expand beyond trading into additional MiCA-regulated offerings.