Hungary Abolishes Crypto Validator System, Issues First MiCA License

The Hungarian Parliament voted to abolish the crypto validator system, eliminating the mandatory requirement for third-party approval for certain crypto transactions. Finance Minister Kármán András stated that the previous regulatory framework disrupted the Hungarian crypto market, leading some service providers to suspend operations, but signs of market recovery have emerged following the repeal. Hungary introduced the validator system in its 2024 crypto asset law, requiring licensed validators to verify the source of crypto assets, wallet ownership, and customer information before issuing compliance statements. This regulation will take effect on July 1, 2025. Hungary's MiCA transition period is shorter than the maximum transition period set by the EU. A stricter regulatory environment has led some platforms, including CoinCash, to suspend services. CoinCash voluntarily suspended operations in December 2025, seeking MiCA authorization instead. On July 20, the Hungarian central bank granted the first MiCA license to CoinCash's operating entity, Tiwala Solutions, covering services such as custody, exchange between crypto assets and fiat currencies, transfers, investment advisory, and portfolio management. CoinCash stated that it has completed compliance reviews and plans to gradually resume services while expanding into other MiCA-regulated businesses.