Hungary eases crypto rules, grants first MiCA license

Hungary repealed its crypto validation rule and granted CoinCash the first MiCA license, aligning with EU standards and easing compliance for crypto businesses.

Hungary has repealed its mandatory third-party validation rule for cryptocurrency transactions, significantly simplifying the process of converting digital assets and reducing compliance burdens for businesses. This legislative update aligns Hungary’s legal framework with the European Union’s Markets in Crypto-Assets (MiCA) regulation, fostering a more unified approach across the region. CoinCash, operated by Tiwala Solutions, has become the first company in Hungary to receive a MiCA license. This license enables CoinCash to provide a range of services, including custody, crypto-to-fiat and crypto-to-crypto exchanges, transfers, investment advice, and portfolio management. The repeal was motivated by concerns that the previous validation requirement created friction, conflicted with EU law, and imposed unsustainable burdens on digital asset businesses, leading some providers to exit the market. These changes are expected to create a more favorable environment for crypto businesses and users, potentially boosting cryptocurrency adoption in Hungary and influencing the broader European market.