Hungary has rolled back a controversial crypto validation rule just as Budapest-based CoinCash receives authorization under the EU’s Markets in Crypto-Assets (MiCA) framework, signaling a shift in the country’s regulatory approach and potential market recovery.
Parliament voted to eliminate the requirement that certain crypto transactions be approved by a licensed third-party validator. The rule had been introduced in Hungary’s 2024 crypto assets law and took effect on July 1, 2025. Under that regime, a licensed validator had to confirm details such as the origin of funds, wallet ownership and customer identity before issuing a compliance declaration for specified crypto conversions. Critics said the extra, transaction-level approval step disrupted services and discouraged providers from operating in Hungary.
Finance Minister Kármán András said the validation obligation was removed after it caused market dislocation and led several providers to suspend services, and he added that the market is now beginning to recover. The repeal eliminates the additional approval layer while leaving broader licensing and compliance obligations intact.
Hungary had also imposed an accelerated MiCA transition schedule for crypto asset service providers, requiring compliance by July 1, 2025—earlier than the EU’s maximum transition deadline of July 1, 2026. That tighter timetable, combined with the validator rule, contributed to some platforms pausing operations in the country.
CoinCash was among those that temporarily halted services; the Budapest-based platform paused operations in December 2025 while pursuing formal MiCA authorization. On July 20, the National Bank of Hungary (MNB) granted MiCA authorization to CoinCash’s operator, Tiwala Solutions, marking the first direct MiCA approval by the Hungarian regulator. CoinCash’s leadership noted the milestone publicly, describing the firm as the first Hungarian company authorized under the national implementation of the EU framework.
The authorization covers a wide range of activities, including custody, crypto-to-fiat and crypto-to-crypto exchange, transfers, investment advice and portfolio management. Company representatives said they completed a months-long compliance review before receiving the green light, and that the temporary service suspension was part of their effort to meet regulatory requirements.
CoinCash plans a phased resumption of services and intends to expand beyond trading into additional offerings that fall under MiCA. The combination of the validator repeal and the granting of a MiCA license to a domestic operator is likely to ease operational barriers for other providers and could encourage renewed market activity in Hungary, though firms will still need to satisfy licensing and compliance standards under the EU rulebook.