Hungary has removed mandatory third-party checks for cryptocurrency transactions, allowing CoinCash to receive its first MiCA license. This marks a shift in the country's crypto regulatory environment
In a significant move towards easing crypto regulations, Hungary recently repealed mandatory third-party checks on certain cryptocurrency conversions, marking an end to strict rules that had prompted some service providers to halt operations within the country. The repeal was made possible after CoinCash received authorization under the European Union’s Markets in Crypto-Assets (MiCA) regulation.
CoinCash, a Budapest-based crypto platform, became Hungary's first company to obtain direct MiCA authorization from the National Bank of Hungary (MNB). This approval covers custody services, exchanges between cryptocurrencies and fiat currencies, transfers, investment advice, and portfolio management. The decision comes after CoinCash voluntarily paused operations in December 2025 for several months while preparing to meet compliance requirements.
The Hungarian government introduced these validation rules through its 2024 crypto assets law, which required licensed validators to verify details such as the origin of crypto assets, wallet ownership, and customer information before issuing a compliance declaration. These additional steps added another approval layer on top of MiCA regulations, leading some platforms like CoinCash to temporarily suspend services.
Finance Minister Kármán András stated that removing these validation requirements was necessary due to their disruptive impact on the crypto market in Hungary. He noted that many service providers had ceased operations following the stringent rules but observed signs of recovery as regulatory clarity improves. The government aims to maintain broader licensing and compliance measures while streamlining processes.
This development is part of a larger trend towards harmonizing EU regulations across member states, with MiCA designed to provide uniform standards for crypto asset services. However, it remains to be seen how other countries will follow Hungary's lead in adjusting their regulatory landscapes.
Traders and investors should monitor the broader implications of this change on market liquidity and user confidence within the Hungarian crypto ecosystem. The easing of regulations could potentially attract more users and businesses back into the local market.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.