Governor of the Central Bank of Hungary Calls for an EU-Wide Ban on Cryptocurrency Trading and Mining Cryptocurrency

The Governor of the Central Bank of Hungary has called for a ban on cryptocurrency trading and mining in the European Union. “It is clear that cryptocurrencies could serve illegal activities and tend to build financial pyramids,” he said.

Hungary’s central bank chief wants EU-wide ban on crypto trading and mining

The Hungarian National Bank, the central bank of Hungary, released a statement Friday from György Matolcsy, the governor of the central bank, saying 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 that Russia’s central bank has proposed “a ban on crypto trading and mining.”

Commenting on the proposed Russian central bank crypto ban, Governor Matolcsy said:

I fully agree with the proposal and also support the view of the EU’s top financial regulator that the EU should ban the mining method used to produce new bitcoins.

In January, the Vice Chairman of the Supervisory Board of the European Securities and Markets Authority (ESMA), Erik Thedéen, called for an EU-wide ban on cryptocurrency mining based on of the concept of proof of work.

The Governor of the Hungarian National Bank added that the Russian central bank “is right” in saying that “the skyrocketing growth and market value of cryptocurrencies is mainly defined by the speculative demand for future growth, which creates bubbles”.

He stressed: “The EU should act together to prevent the formation of new financial pyramids and financial bubbles. EU citizens and businesses would be allowed to own cryptocurrencies overseas, and regulators would track their holdings. Governor Matolcsy added:

It is clear that cryptocurrencies could serve illegal activities and tend to constitute financial pyramids.

Russia’s central bank proposed in January to ban all cryptocurrency operations in the country. “Cryptocurrencies also have aspects of financial pyramids, as their price growth is largely supported by demand from new market entrants,” according to the report published by the Bank of Russia.

However, the proposed central bank crypto ban has faced opposition as the Russian government, parliament, and even law enforcement agencies are said to be unwilling to support the proposal.

Russian President Vladimir Putin then urged the government and central bank to reach consensus on cryptocurrency, pointing to the potential for cryptocurrency mining in Russia. Last week, the Russian government approved a cryptocurrency regulatory plan.

What do you think of the Hungarian central bank governor’s call for a ban on crypto trading and mining in the EU? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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