Hungary Eases Crypto Rules as ESMA’s MiCA Registry Reaches Over 300 Licensed Firms

• Hungary repealed mandatory validation requirements for certain crypto conversions while issuing its first MiCA authorization to CoinCash
• ESMA added 15 new Crypto Asset Service Providers to its MiCA register, bringing the total to 309 licensed firms across Europe
• The latest developments highlight MiCA’s growing role in creating a unified regulatory framework for crypto businesses across the EU

Hungary has taken another step toward aligning its crypto market with the European Union’s MiCA framework after lawmakers voted to scrap a controversial transaction validation rule. The move comes as the bloc’s regulatory framework continues to gather pace, with ESMA recently expanding its official MiCA registry to 309 licensed Crypto Asset Service Providers (CASPs). Together, the developments point towards how Europe’s crypto rulebook is entering a new phase.

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Hungary Aligns Its Crypto Framework With MiCA

Hungary’s Parliament voted on Tuesday to repeal the country’s mandatory third-party validation requirement for certain cryptocurrency transactions. It removed one of the most criticized provisions introduced under its 2024 Crypto Act.

The repealed framework required crypto-to-fiat and crypto-to-crypto transactions to pass through a licensed local validator before receiving legal recognition. Validators were responsible for reviewing wallet ownership, customer identities, transaction histories, and the origin of digital assets before issuing compliance certificates.

Finance Minister Kármán András said the previous framework had disrupted Hungary’s domestic crypto market. This prompted several firms to suspend operations or leave the country altogether. Writing on Facebook, András said the government opted to remove the rule after concluding it had weakened market activity rather than strengthened oversight.

The repeal leaves MiCA licensing and compliance obligations intact while eliminating an additional layer of approval that existed only in Hungary. The government has also indicated it plans to remove criminal penalties introduced under the previous administration. This had imposed prison sentences for certain unauthorized cryptocurrency activities.

The regulatory shift has already produced its first milestone. On July 20, the National Bank of Hungary granted Budapest-based CoinCash, operated by Tiwala Solutions, the country’s first MiCA authorization. The license allows the company to offer custody, crypto-to-fiat and crypto-to-crypto exchange services, transfers, investment advice, and portfolio management across the European Union.

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ESMA’s Registry Expands to Over 300 Licensed Firms

Hungary’s latest reforms come days after ESMA added 15 new CASPs to its official MiCA registry. This brought the total to over 300 licensed firms across the European Economic Area.

The latest additions include BNY Mellon’s Belgian subsidiary and payments company BitPay. This shows how both traditional financial institutions and established crypto businesses are entering the EU’s regulatory framework. Under MiCA, licensed providers can passport their services across all 27 EU member states without obtaining separate national approvals. This creates a single regulatory market for digital asset firms.

Hungary’s decision to remove its additional validation requirement brings its domestic rules closer to that framework. With more firms entering the MiCA registry and member states continuing to align national legislation, Europe’s crypto market is shifting from regulatory rollout to implementation.

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