Crypto▲ Bullish
Hungary Repeals Crypto Validation Law, Allowing MiCA Compliance
Hungary scrapped its crypto transaction validation system, aligning with EU MiCA rules. CoinCash, which suspended services in December, has now received a MiCA license from the central bank.
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Hungary’s parliament has repealed the mandatory third-party validation system for cryptocurrency transactions, reversing a law that took effect in July 2025. The repeal removes an extra verification layer that disrupted market operations and drew criticism for exceeding European Union requirements.
The validation framework required authorized validators to review asset sources and transaction histories before issuing compliance certificates. Without certification, conversions lacked legal standing. Lawmakers said the supplementary procedure went beyond EU mandates and undermined regular market operations. Hungary had implemented the system alongside the Markets in Crypto-Assets (MiCA) regulation while reducing the transition window for service operators. The EU had allowed member states to extend national transition frameworks through July 2026.
The former rules generated confusion among consumers, platforms, and local operators. Multiple firms paused operations, cut domestic offerings, or considered relocating to other European jurisdictions. Trading volumes declined as companies navigated overlapping verification and licensing requirements.