Hungary’s parliament voted on July 29, 2026, to repeal mandatory third-party validator checks for crypto conversions, marking a regulatory reversal just days after the National Bank of Hungary granted CoinCash the country’s first authorization under the EU’s Markets in Crypto-Assets Regulation (MiCA).
The validator requirement, introduced through Hungary’s 2024 crypto assets law, had mandated licensed validators verify asset origin, wallet ownership, and customer information before issuing compliance declarations. The rules took effect on July 1, 2025, ahead of the EU-wide MiCA compliance deadline and the broader EU transition period of July 1, 2026.
The stricter regulatory environment prompted crypto platforms to suspend operations. CoinCash, operated by Tiwala Solutions, voluntarily paused services in December 2025 but returned after securing MiCA authorization from the National Bank of Hungary on July 20, 2026.
The authorization permits CoinCash to provide custody, crypto-to-fiat and crypto-to-crypto exchange, transfers, investment advice, and portfolio management under the EU framework. A CoinCash co-founder stated: “We’re the first and only Hungarian company authorised directly by the National Bank under the EU framework.”
Finance Minister Kármán András framed the validator repeal as part of broader market recovery. “Due to the negative and market-shaking regulations so far, many players have terminated their services related to cryptocurrencies in Hungary, but the market is now showing signs of recovery,” he said.
Hungary’s crypto assets law imposes a two-year prison penalty for unauthorized crypto trading. The parliament’s repeal of the validator requirement removes a compliance layer that had contributed to platform exits but does not affect MiCA authorization standards or the National Bank’s oversight of licensed operators like CoinCash.
