Hungary scraps crypto validation requirement and issues first MiCA license

Hungary is taking two notable steps in crypto regulation. The parliament votes to abolish mandatory third-party validation for certain crypto conversions, while the National Bank of Hungary simultaneously issues the country’s first MiCA licence to crypto company CoinCash.

Mandatory validation removed from law

Until now, strict rules applied to crypto transactions in Hungary. Companies were required to use independent third parties to check the origin of crypto assets, verify that wallets actually belong to the customer, and validate customer information before a transaction is carried out. The Hungarian parliament has now decided to scrap this mandatory third-party validation for certain crypto conversions.

This step fits into a broader European development, where countries are adjusting their national regulations to the MiCA framework. MiCA, the European regulation for crypto markets, creates a harmonised playing field within the EU. Earlier, six MiCA-certified stablecoins in the EU were approved.

CoinCash receives historic MiCA licence

Separately from the legislative change, the National Bank of Hungary grants on 20 July the first MiCA authorisation to Tiwala Solutions, the parent company of crypto platform CoinCash. It concerns a broad licence covering multiple services: custody of crypto assets, conversion of crypto to fiat and crypto to crypto, transfers, investment advice and portfolio management.

With this licence, CoinCash is the first company in Hungary to officially operate under MiCA. This gives the platform not only more legitimacy with Hungarian users, but also opens the door to other EU member states via the European passport mechanism. Countries such as Hungary are thus working step by step towards a clearer and safer regulatory framework for crypto, in line with the rest of Europe.