Hungary Repeals Validator Rules After Market Disruption, Granting First MiCA License

Woofun AI reports that Hungary has dismantled its stringent crypto validator framework, a move that directly enables CoinCash to restart operations after securing authorization under the European Union’s Markets in Crypto-Assets (MiCA) regulation. This regulatory reversal follows significant market disruption caused by previous mandates, with Finance Minister Kármán András acknowledging the necessity of the change to restore sector stability.

The Hungarian parliament voted to abolish the mandatory third-party approval requirement for specific crypto transactions, as reported by Ado.hu on Tuesday. Finance Minister Kármán András justified the repeal in a Facebook post, citing that 'market-shaking regulations' had forced many providers to terminate services, though he noted the market is now displaying 'signs of recovery.' This legislative action removes a critical bottleneck while maintaining broader compliance structures.

Structurally, the repealed mandate originated from the 2024 crypto assets law, which instituted a separate validation process effective July 1, 2025. Under these rules, a licensed validator was required to verify the origin of crypto assets, wallet ownership, and customer information before issuing a compliance declaration. This system operated alongside MiCA requirements, imposing a shortened transition period for crypto asset service providers (CASPs) to achieve compliance by July 1, 2025, rather than the EU’s maximum deadline of July 1, 2026.

The intensified regulatory burden triggered a wave of service suspensions across the sector.

Notably, the Budapest-based crypto platform CoinCash voluntarily paused operations in December 2025. This suspension was a strategic decision made while the company pursued the necessary MiCA authorization, highlighting the operational friction caused by the overlapping regulatory demands.

Woofun AI data shows that the National Bank of Hungary (MNB) granted Tiwala Solutions, the operator behind CoinCash, MiCA authorization on July 20, according to a company announcement. In a LinkedIn post on Friday, CoinCash co-founder declared the firm as the 'first and only Hungarian company authorised directly by the National Bank under the EU framework.' The license permits custody, crypto-to-fiat and crypto-to-crypto exchange, transfers, investment advice, and portfolio management, following a months-long compliance review.

CoinCash intends to gradually resume services, leveraging its new status to expand beyond basic trading into additional MiCA-regulated offerings. This development marks a definitive shift toward regulatory harmonization with EU standards, replacing fragmented national mandates with a unified compliance pathway for market participants.