Hungary has made a significant change in the country’s regulatory approach by removing the requirement for verification by an independent party for cryptocurrency transactions. The regulation comes as part of a transition to a framework more aligned with the European Union’s Crypto Asset Markets regulation, MiCA.
Compliance step with MiCA
The Hungarian Parliament has tabled amendments to the law that remove the mandatory independent verification requirement for some cryptocurrency transactions and some criminal provisions regarding unlicensed exchange services and improper use of crypto assets. The authors of the regulation argued that this verification requirement contradicted European Union rules. Thus, an additional obligation was removed, while other regulatory provisions were left in force.
MiCA creates a common framework for crypto asset service providers across the European Union. Arrangement; It determines the conditions under which services such as custody, trading, transfer and investment consultancy will be offered.
The Hungarian side announced that the obligation for independent verification had become incompatible with European Union regulations and therefore the additional obligation was abolished.
The old rule put pressure on the industry
Nikoletta Boda, State Secretary for Parliamentary Affairs at the Ministry of Finance, announced that this verification obligation comes into force on July 1, 2025. Under this structure, each crypto-to-fiat and crypto-to-crypto transaction required a declaration of conformity from a certified validator.
Validators were required to confirm wallet ownership, customer identity, and source of crypto assets. There were also criminal sanctions for those who acted against the rules. However, it was stated that this system created a serious burden on crypto companies.
Finance Minister Karman Andras said that this regulation significantly disrupted the crypto ecosystem in Hungary and many service providers were forced to cease their activities. It was reported that the market started to return to a more stable ground after the government removed the additional approval step.
Karman Andras emphasized that the application disrupted the functioning of the crypto market in Hungary and many service providers had to suspend their operations.
CoinCash license was a turning point
The regulatory change coincided with the resumption of Budapest-based CoinCash’s operations. Tiwala Solutions, the operator of CoinCash, received the first MiCA license in the country from the Central Bank of Hungary on July 20. CoinCash is known as a crypto service platform operating in Hungary.
This license; It allows services such as custody, crypto-to-fiat and fiat-to-crypto conversion, transfer, investment consultancy and portfolio management.
| Title | old situation | new situation |
|---|---|---|
| Validation requirement | Independent verifier required | Obligation removed |
| harmony calendar | Hungary wanted earlier harmonization | Closer framework adopted with MiCA |
| CoinCash status | Activities stopped due to the adaptation process | Preparations for a return have begun with the MiCA license |
Its impact on the market will be monitored
Hungary’s previous implementation of stricter rules that went beyond the European Union’s minimum framework had created controversy in the industry. While MiCA gives member countries until July 2026 for full compliance, Hungary requested this compliance from crypto asset service providers a year ago. In addition, the verification process brought the country to a more stringent point.
Gabor Galantai, one of the founding partners of CoinCash, said that the authorization received is a milestone in terms of being the first Hungarian company authorized under MiCA. It is evaluated that the new approach may attract other crypto companies to the Hungarian market and accelerate license applications. Whether this will increase competition in the field of regulated digital asset services in Europe will become clear in the coming period.
