Hungary’s central government calls for a crypto ban in the European Union. The ban will be for both trading and mining as per the bank’s demand. According to the bank, the reason cited by the government is the illegal activities that could spew up due to the use of cryptocurrencies. Even though reports show that only a small portion of the total crypto volume was used for wrong activities, this statement was made.
Hungary’s central government on crypto ban
It has become clear that banning crypto has become one of the primary concerns of all central banks. And now Hungary’s central bank has also joined the group. The governor recently made the statement that the time to ban the trading and mining of crypto has come. He also cited examples of China’s crypto ban in 2020 and Russia’s central bank’s proposal to ban crypto.
The governor agrees with China’s steps and also the proposal of the Russian central bank. Though, he failed to mention that the authorities and the bank have arrived at a conclusion to treat cryptocurrencies as currencies. Still, Hungary’s central bank wants that the mining of Bitcoin and trading to be banned in all EU nations.
A while earlier, even the vice-chairman of the European Securities and Markets authorities called for a crypto ban working on the proof of work concept. And the governor supports this by saying that the growth of crypto is speculative, which can be one of the primary reasons for bubble formation.
What does the governor want to do?
The idea is to prevent the growth of crypto by banning it because he deems them as bubbles and financial pyramids. There is no proposal for a regulation, strict laws, or anything that helps the market; it is an outright ban. So, whether it is for the benefit of thousands of investors or their own is not clear. But it is unlikely that such a thing will happen. This is because the Russian president has already cleared that they won’t be banning crypto. In fact, they will coin them as currencies.
What are your thoughts as Hungary’s central government calls for a crypto ban in the EU? And do you think this could happen without Russia’s backing? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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