The governor of Hungary’s central bank has called for a European Union ban on cryptocurrency trade and mining. “It is undeniable that cryptocurrencies could be used to facilitate illicit activities and contribute to the formation of financial pyramids,” he stated.
Hungary’s central bank has called for a European Union ban on cryptocurrency trade and mining
The governor of Hungary’s central bank, György Matolcsy, issued a statement Friday proclaiming that “the time has come to ban crypto trading and mining in the EU,” according to the Hungarian National Bank.
He pointed out that “all cryptocurrency activities were deemed unlawful by China in September,” and that Russia’s central bank has advocated “a ban on crypto trading and mining.”
Governor Matolcsy responded to the Russian central bank’s proposed crypto prohibition by saying: ”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.”
Erik Thedéen, vice chairman of the European Securities and Markets Authority’s (ESMA) Board of Supervisors, proposed for an EU-wide ban on cryptocurrency mining based on the proof-of-work principle in January.
“The fast rise and market value of cryptocurrencies are characterized mostly by speculative demand for future growth, which produces bubbles,” the governor of the Hungarian National Bank continued, adding that the Russian central bank “is right.”
“The EU should act jointly to prevent the formation of future financial pyramids and financial bubbles,” he said. EU people and businesses would be able to own cryptocurrencies in other countries, with regulators keeping track of their holdings.” Governor Matolcsy went on to say: ”The fact that cryptocurrency could be used to support illegal activity and build financial pyramids is obvious.”
In January, Russia’s central bank suggested banning all cryptocurrency transactions in the nation. According to research published by the Bank of Russia, “Cryptocurrencies also contain features of financial pyramids, because their price growth is largely driven by demand from new entrants to the market.”
Russia’s parliament and cabinet, on the other hand, have expressed opposition to the central bank’s proposed crypto prohibition. The initiative is also unlikely to receive backing from law enforcement agencies.
Russian President Vladimir Putin called on the government to agree on cryptocurrency. He emphasized the potential of Bitcoin mining in Russia. Last week, the Russian government approved a plan to regulate cryptocurrency.
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