Hungary Abolishes Cryptocurrency Verification Rules, Restructures Market to Comply with MiCA

Abolishing Unique Verification Rules to Support the Resumption of the Cryptocurrency Market

On July 28, 2026 (Tuesday), the Hungarian Parliament passed Bill T/305, which abolishes the requirement for third-party verification imposed on certain cryptocurrency transactions, with 143 votes in favor, 46 against, and 1 abstention.

In Hungary, in addition to the EU (European Union) common regulations, a unique transaction approval was required. However, after the introduction of the system, multiple operators ceased their services. This abolition opens the way to relax regulations while returning to a system centered around MiCA (Markets in Crypto-Assets Regulation).

Third-Party Approval for Each Transaction Pressured the Market

The abolished validator system was introduced based on Hungary's 2024 cryptocurrency law and came into effect on July 1, 2025. For exchanges between cryptocurrencies and fiat currencies, as well as exchanges between cryptocurrencies, approval from a locally authorized validator was required prior to the transaction.

Validators were responsible for verifying the source of cryptocurrencies, ownership of wallets, customer information, transaction history, and issuing compliance declarations. Transactions that did not receive the necessary certification were deemed legally invalid, and criminal liability was imposed on some transactions that involved unauthorized exchange services or approval processes.

Finance Minister Kármán András explained that the previous framework disrupted the domestic cryptocurrency market, causing multiple companies to halt operations. In fact, operators including Revolut and CoinCash were forced to suspend or limit their services. CoinCash also voluntarily ceased operations in December 2025 to prepare for obtaining MiCA approval.

With this legal amendment, additional approvals for each transaction will no longer be necessary, while the licensing requirements and compliance obligations for cryptocurrency operators will remain in place.

CoinCash to Resume Operations After Receiving First MiCA Approval

Prior to the abolition of the rules, on July 20 (Monday), the MNB (Hungarian National Bank) granted MiCA-based approval to CoinCash's operating company, Tiwala Solutions. According to the company, it became the first domestic enterprise to directly obtain MiCA approval from the Hungarian central bank.

The approval covers cryptocurrency custody, exchanges between cryptocurrencies and fiat currencies, exchanges between cryptocurrencies, asset transfers, investment advice, and portfolio management. CoinCash plans to gradually resume services and expand its business to include MiCA-targeted services beyond transactions.

Hungary's unique system added approval at the transaction level to MiCA, making it a subject of investigation by the European Union regarding its compatibility with EU law. Concerns about money laundering and other issues have been raised in response to the abolition of the rules, but supporters argue that obligations including AML (Anti-Money Laundering) and KYC (Know Your Customer) will continue to be maintained.

Can the market, which has shrunk due to unique regulations, be rebuilt under the common framework of the EU? This regulatory change and the initial approval for CoinCash seem to mark a turning point for Hungary's cryptocurrency market to begin moving again.

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