CoinCash wins Hungary’s first MiCA license as validator rules end
Hungary ends mandatory crypto validation after CoinCash receives its first domestic MiCA license, easing conversion rules while keeping compliance duties.
Hungary’s parliament voted on July 28, 2026, to abolish the country’s national crypto validator system, removing mandatory third-party checks on crypto conversions that had disrupted the domestic market since 2025. The reversal follows the National Bank of Hungary, or Magyar Nemzeti Bank, granting CoinCash the country’s first domestic license under the European Union’s Markets in Crypto-Assets (MiCA) framework, according to CoinEdition reporting.
What the repeal removes
Hungary’s validation rules required a certified third party to verify wallet ownership, identity and the origin of funds before crypto-to-fiat or crypto-to-crypto conversions could proceed. The requirement operated alongside MiCA licensing obligations.
The rules disrupted the market and prompted some platforms to pause, restrict or end operations in Hungary, according to reporting on the parliamentary decision. The repeal removes the transaction-level validation process while retaining broader licensing and compliance obligations. CryptoTimes reported that the parliamentary vote passed 143-46, with one abstention.
CoinCash’s first-mover position
CoinCash, which is operated by Tiwala Solutions, is the first domestic company authorized as a Crypto Asset Service Provider directly by the National Bank of Hungary under MiCA. The authorization covers custody, crypto-to-fiat and crypto-to-crypto exchange, transfers, investment advice and portfolio management, according to CryptoTimes.
CoinCash voluntarily paused operations in December 2025 while meeting MiCA requirements. The company has said it will gradually resume services and later expand its range of MiCA-regulated offerings following the approval process.
Hungary’s move toward the EU framework
MiCA provides a unified regulatory framework for crypto-asset services in the European Union. Hungary’s validator requirement imposed an additional transaction-level process beyond the framework’s licensing requirements.
According to the government’s justification cited by CryptoTimes, the domestic requirement created significant friction, conflicted with overarching EU law and placed a burden on digital-asset businesses. By removing the validation process while retaining broader licensing and compliance obligations, Hungary is bringing its crypto framework closer to the EU’s harmonized approach.
What changes now
Crypto conversions will no longer require the separate validation declaration that had been mandated under the previous framework. The repeal also removes related criminal offenses tied to unauthorized crypto exchange services and violations of the validation requirement, according to CryptoTimes.
CoinCash has said it will restore services gradually and expand into additional MiCA-regulated activities. Its authorization and Hungary’s repeal of the validator requirement mark a shift to a framework centered on MiCA licensing and broader compliance obligations.
