Hungary Repeals Crypto Validation Rule as CoinCash Secures First MiCA License

Hungary’s parliament voted 143‑46 to abolish the mandatory third‑party validation of crypto‑to‑fiat and crypto‑to‑crypto conversions, a rule that had required validators to confirm customer identity, wallet ownership and source of funds since July 1, 2025. The government said the requirement conflicted with the EU’s Markets in Crypto‑Assets (MiCA) framework and hindered the domestic crypto market.

CoinCash, operated by Tiwala Solutions, received Hungary’s first MiCA licence from the National Bank of Hungary on July 20. The licence authorises the firm to provide custody, conversion, transfer, investment‑advice and portfolio‑management services. Finance Minister Kármán András described the previous validation system as disruptive, while State Secretary Nikoletta Boda noted the change aligns Hungary with the EU deadline for MiCA compliance. Other regulatory controls remain in place, but the repeal is expected to ease operations for crypto service providers and attract further applications.

The combined reforms mark a significant step toward harmonising Hungary’s digital‑asset rules with EU standards and could improve liquidity and market confidence for Bitcoin and other cryptocurrencies traded on regulated Hungarian platforms.