Hungary has scrapped its strict crypto validation rule that forced all crypto transactions to be verified by an independent party. This regulatory rollback aligns the country more closely with the EU’s Markets in Crypto-Assets (MiCA) framework.
The controversial rule, which came into effect on July 1, 2025, required every crypto-to-fiat and crypto-to-crypto exchange to get approval from a certified validator. This validator was tasked with confirming wallet ownership, customer identities, and the origin of the coins. Failure to comply triggered criminal penalties, prompting many crypto service providers to halt operations.
The Hungarian Parliament repealed the validation mandate and related criminal penalties, acknowledging that the rule conflicted with EU regulations. Finance Minister Kármán András admitted the policy had disrupted the crypto scene, pushing Hungary beyond the EU’s minimum standards. In fact, Hungary initially demanded MiCA compliance a year ahead of the July 2026 EU deadline, coupled with this strict validation, which proved too burdensome.
Now, with the validation step removed, the market shows signs of stability. The timing coincides with CoinCash in Budapest becoming the first company to secure a MiCA license in Hungary, setting a new precedent for crypto businesses in the country as they prepare to restore full operations.
