Hungary Ditches Crypto Validator Requirement Amid MiCA Alignment Efforts

Hungary has repealed its requirement for cryptocurrency validators after lawmakers voted to remove the rule. The validator requirement, introduced under Hungary's 2024 crypto assets law, had driven several companies out of the market and disrupted trading activity.

The government said it decided to eliminate the requirement after the previous framework led to the withdrawal or suspension of services by many cryptocurrency businesses. Finance Minister Kármán András noted that the regulations created legal uncertainty for users and companies alike.

CoinCash has received Hungary's first MiCA license and plans to gradually resume crypto services under the European Union’s Markets in Crypto-Assets (MiCA) framework. The authorization permits CoinCash to offer custody services, crypto-to-fiat exchanges, crypto-to-crypto trading, digital asset transfers, investment advice, and portfolio management.

The repeal removes an additional transaction approval layer that existed alongside MiCA while leaving the country's licensing and compliance obligations for crypto asset service providers unchanged. The move brings Hungary's regulatory framework closer to aligning with EU regulations.