The governor of Hungary’s central bank has called for a ban on cryptocurrency trading and mining in the European Union. “It is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids,” he said.
Hungarian Central Bank Chief Demands EU-Wide Crypto Trading and Mining Ban
The Hungarian National Bank, the central bank of Hungary, published a statement Friday from György Matolcsy, the governor of the central bank, declaring that the “Time has come to ban crypto trading and mining in the EU.”
He noted that “China declared all cryptocurrency activities illegal last September” and Russia’s central bank has proposed “a ban on crypto trading and mining.”
Commenting on the Russian central bank’s crypto ban proposal, Governor Matolcsy said:
I perfectly agree with the proposal and also support the senior EU financial regulator’s point that the EU should ban the mining method used to produce new bitcoin.
In January, the vice chairman of the Board of Supervisors of the European Securities and Markets Authority (ESMA), Erik Thedéen, called for an EU-wide ban on cryptocurrency mining based on the proof-of-work concept.
The governor of the Hungarian National Bank added that the Russian central bank “is right” in saying that “The breakneck growth and market value of cryptocurrencies is defined primarily by speculative demand for future growth, which creates bubbles.”
He emphasized: “The EU should act together in order to preempt the building up of new financial pyramids and financial bubbles. EU citizens and companies would be allowed to own cryptocurrencies abroad and regulators will track their holdings.” Governor Matolcsy further opined:
The fact that cryptocurrency could be used to support illegal activity and build financial pyramids is obvious.
Russia’s central bank proposed in January to outlaw all cryptocurrency operations in the country. “Cryptocurrencies also have aspects of financial pyramids, because their price growth is largely supported by demand from new entrants to the market,” according to the report published by the Bank of Russia.
However, opposition to the central bank’s crypto ban proposal was voiced by Russia’s parliament and government. Law enforcement agencies are also not expected to support the proposal.
Russian President Vladimir Putin called on the government to agree on cryptocurrency. He highlighted the possibilities of Russian cryptocurrency mining. The Russian government last week approved a plan for cryptocurrency regulation.
You think the Hungarian central banking governor, calling for an EU ban on crypto trading or mining? Comment below.
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