Just eight days after CoinCash received Hungary's first MiCA license on July 20, the country's parliament voted to eliminate tough national rules that had crippled the local crypto industry.
The company endured a 16-month approval process to become the first crypto provider based in Hungary authorized under the EU's new MiCA framework. This license came amid stringent domestic regulations that forced multiple crypto firms to halt services, pull out, or delay growth plans within Hungary.
Hungary had applied additional requirements alongside MiCA, including a national validation of crypto exchange transactions and criminal penalties up to two years for unauthorized operations, which created an outlier environment. Firms like Revolut, MoonPay, Strike, and Kriptomat cited these demands when suspending services, while CashCoin moved operations to the Netherlands, intending to return under MiCA passporting.
CoinCash's CEO Attila Mogyorósi remarked that the firm chose to confront Hungary's strict regime rather than relocate. If the repeal passes fully, those additional barriers will vanish, allowing European crypto companies to serve Hungarian clients without navigating separate rules.
The repeal vote aims to reverse the exodus of crypto businesses that viewed the national requirements as overly burdensome compared to MiCA's 18-month transition period. The previous domestic compliance deadline was set for July 1, 2025.
CoinCash had suspended operations for seven months during regulatory reviews but now stands as a pioneer working within the evolving landscape. The license remains valid regardless of the pending legislative changes.
This move illustrates Hungary’s adjustment to align with the EU's broader crypto regulations, potentially restoring confidence for crypto brokers and providers in the country.
This material is for informational purposes and does not constitute financial advice.
