Hungary has removed its controversial cryptocurrency validator requirement after Parliament voted to repeal the rule, clearing the way for crypto firms including CoinCash to restore services under the European Union's Markets in Crypto-Assets (MiCA) framework. According to Crypto.News, the Hungarian Parliament approved legislation repealing the mandatory third-party validation process that had applied to certain cryptocurrency transactions. Finance Minister Kármán András said the government decided to eliminate the requirement after the previous framework disrupted the domestic crypto market and led several companies to withdraw or suspend their services. Officials stated that the previous framework created unnecessary barriers for crypto firms and slowed market activity, prompting the government to simplify its approach after April's parliamentary elections.
As the regulatory environment changed, Budapest-based CoinCash completed its licensing process under MiCA. According to a company announcement reviewed by Cointelegraph, the National Bank of Hungary granted MiCA authorization to CoinCash operator Tiwala Solutions on July 20. CoinCash co-founder Gábor Galántai said in a LinkedIn post that the company had become the first Hungarian business to receive direct authorization from the country's central bank under the EU framework. The authorization permits CoinCash to offer crypto custody, digital asset transfers, crypto-to-fiat exchanges, crypto-to-crypto trading, investment advice and portfolio management under MiCA. CoinCash had suspended operations in late 2025 while adapting to Hungary's previous rules and now plans to gradually restore services.
The validator requirement originated under Hungary's 2024 crypto assets law, which introduced a separate compliance process for selected cryptocurrency transactions. After the rules took effect on July 1, 2025, crypto-to-fiat and crypto-to-crypto conversions covered by the framework required approval from a licensed local validator before they could proceed. Validators had to examine the origin of digital assets, confirm wallet ownership, verify customer identities, verify transaction history, and issue a compliance certificate before transactions could receive legal recognition. Transactions completed without those certificates were considered legally invalid under the previous rules. The system operated alongside the European Union's MiCA regulation, but Hungary imposed a significantly shorter transition period than other EU member states, with authorities now concluding that the additional layer of oversight complicated compliance without delivering sufficient benefits.
The repeal removes an additional transaction approval layer that existed alongside MiCA while leaving the country's licensing and compliance obligations for crypto asset service providers unchanged. According to Finance Minister Kármán András, many cryptocurrency businesses had ended operations in Hungary because of the earlier regulations and that the market was beginning to recover following the policy change. Earlier legislation also created legal uncertainty for users and companies, with around 500,000 Hungarians involved in cryptocurrency activities when the legislation was introduced. Revolut suspended cryptocurrency services in Hungary after the restrictions took effect, while other digital asset companies reportedly explored relocating to countries including Estonia and Lithuania. The regulatory changes could help revive a market that contracted after the stricter framework took effect.
With Parliament now removing the validator requirement and the government previously announcing plans to eliminate criminal penalties tied to crypto trading, Hungary's regulatory framework is moving closer to the European Union's MiCA system. Although licensing, compliance, and anti-money laundering obligations remain in place, removing the additional validation requirement reduces operational complexity for service providers. The latest changes follow policy changes announced after Hungary's April 2026 parliamentary election, which ended former Prime Minister Viktor Orbán's 16-year tenure and brought Peter Magyar's pro-European Tisza Party into government. The regulatory shift comes as Budapest-based CoinCash has said it will gradually restore its services and expand into additional MiCA-regulated products beyond cryptocurrency trading.
