Home Cryptocurrency Hungary’s Central Bank Backs EU Crypto Ban

Hungary’s Central Bank Backs EU Crypto Ban

György Matolcsy, the Governor of the Hungarian National Bank, has advocated a blanket prohibition on all crypto buying and trading as well as mining operations within the European Union.

Governor Matolcsy referenced China’s recent crypto ban in a blog post headlined “Time has come to restrict crypto purchasing and selling & mining only within EU,” which was shared by the Hungarian central bank, a.k.a. Magyar Nemzeti Bank (MNB).

A Blanket Ban

He also mentioned the Russian central bank’s plan, which calls for a total ban on cryptocurrency buying, selling, and mining at home. “I believe that proposal, and similarly the senior EU financial regulator’s levels that the EU should restrict the mining method used to provide maximum new Bitcoin,” Matolcsy said in response to the demands for a crypto ban.

The governor is convinced that cryptocurrency has the potential to “offer illicit actions and tend to increase monetary pyramids.” Matolcsy also addressed concerns voiced by the Russian central bank, namely that the market value of crypto is determined by the “speculative demand for long-term enlargement, which produces bubbles.”

To summarise, Governor Matolcsy calls for an outright ban on cryptocurrency to protect investors from the risks of monetary pyramids & bubbles: “EU electorates and corporations can be permitted to carry cryptocurrencies in a foreign land & regulators will supervise their holdings.”

Rules Rather Than A Ban

Erik Thedéen, the vice-chair of the European Securities and Markets Authority, presumably the top EU regulator for whom Matolcsy vowed to support, argued in favor of a Proof-of-Work ban on Jan. 19 for reasons different from the governor of Hungary’s Central Bank. Instead of the primary financial issues raised by Matolcsy, Thedéen pushed for a Proof-of-Work prohibition based on environmental considerations.

Matolcsy echoed the Bank of Russia’s position, which suggested a crypto mining and trade ban on January 20. Nonetheless, Russian agencies and authorities appeared to veto the central bank’s plan the following week, opting instead for rules rather than a ban. Last week, Russia’s Finance ministry seemed to back up the idea that regulation is preferable to prohibition, calling for cryptocurrency legality and allowing banks to trade cryptocurrenciese, reports Zephyrnet.com


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