Hungary drops mandatory crypto transaction checks after the rule drove providers out of the market. CoinCash becomes the first Hungarian firm licensed under MiCA.
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Hungary's parliament voted to repeal a mandatory third-party validation requirement for crypto conversions, the tax and legal publication Ado.hu reported Tuesday. The repeal removes an extra approval step for certain transactions that had driven service providers out of the country.
Finance Minister Kármán András said the government eliminated the validator requirement because the previous rules disrupted Hungary's crypto market. "Due to the negative and market-shaking regulations so far, many players have terminated their services related to cryptocurrencies in Hungary," he wrote in a Tuesday Facebook post. "The market is now showing signs of recovery."
Hungary introduced the requirement through its 2024 crypto assets law. The rules took effect on July 1, 2025, and required a licensed validator to verify the origin of crypto assets, wallet ownership and customer information before issuing a compliance declaration. The system added a transaction-level approval layer on top of the European Union's Markets in Crypto-Assets (MiCA) regulation.
The country also shortened the MiCA transition period for crypto asset service providers, demanding compliance by July 1, 2025 – a year earlier than the EU's maximum deadline of July 1, 2026.
The stricter environment pushed some platforms to suspend operations. CoinCash, a Budapest-based crypto platform, voluntarily paused services in December 2025 while seeking MiCA authorization.
The National Bank of Hungary granted CoinCash operator Tiwala Solutions authorization under MiCA 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," a CoinCash co-founder said in a LinkedIn post Friday.
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 into additional MiCA-regulated offerings beyond trading.
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