Hungary’s Central Bank Governor Calls for EU-Wide Ban on Cryptocurrency Trading and Mining

Hungary"s Central Bank Governor Calls for EU-Wide Ban on Cryptocurrency Trading and Mining

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 Wants 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: It is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids.

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, the crypto ban proposal by the central bank was met with opposition as the Russian government, parliament, and even law enforcement departments are reportedly not willing to back the proposal.

Russian President Vladimir Putin subsequently urged the government and the central bank to reach a consensus on cryptocurrency, highlighting the potential of cryptocurrency mining in Russia. Last week, the Russian government approved a plan to regulate cryptocurrency. Tags in this story crypto ban, crypto mining ban, crypto trading ban, cryptocurrency ban, eu crypto ban, Hungarian central bank, Hungary, Hungary central bank

What do you think about the Hungarian central bank governor calling for a crypto trading and mining ban in the EU? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. South Korea Jails Seven Masterminds of Country"s "Largest Crypto Fraud Scheme" REGULATION | 1 hour ago Canadian Lawmaker Introduces Bill to Encourage Crypto Sector Growth REGULATION | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleWells Fargo: Cryptocurrency Has Entered ‘Hyper-Adoption Phase’ Next articleCydia Dev Discloses Ethereum L2 Bug — Optimism Attacker Could Have ‘Printed an Arbitrary Quantity of Tokens’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFarmville Creator Zynga to Launch NFT Games, Says Gaming Firm"s Blockchain Lead

American social game developer Zynga has plans to launch non-fungible token (NFT) games in the near future. Zynga’s vice president of blockchain, ​​Matt Wolf, told the press that the company is looking at the cycle right now and “figuring out ... read more.Students Mining Crypto in Dorms May Face Criminal Prosecution in Russia, Lawyer Says McDonald’s Trademark Filings Hint at Fast Food Giant"s Intent to Produce Metaverse Restaurants JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead RBI: Cryptocurrency Is a Big Threat to Macroeconomic and Financial Stability in India