{"id":7757,"date":"2022-02-13T05:44:12","date_gmt":"2022-02-13T05:44:12","guid":{"rendered":"http:\/\/egrowonline.com\/?p=7757"},"modified":"2022-02-13T05:44:12","modified_gmt":"2022-02-13T05:44:12","slug":"hungarys-central-bank-governor-calls-for-eu-wide-ban-on-cryptocurrency-trading-and-mining-bitcoin-news","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=7757","title":{"rendered":"Hungary’s Central Bank Governor Calls for EU-Wide Ban on Cryptocurrency Trading and Mining \u2013 Bitcoin News"},"content":{"rendered":"


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The governor of Hungary\u2019s central bank has called for a ban on cryptocurrency trading and mining in the European Union. \u201cIt is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids,\u201d he said. <\/strong><\/p>\n

Hungarian Central Bank Chief Wants EU-Wide Crypto Trading and Mining Ban<\/h2>\n

The Hungarian National Bank, the central bank of Hungary, published a statement Friday from Gy\u00f6rgy Matolcsy, the governor of the central bank, declaring that the \u201cTime has come to ban crypto trading and mining in the EU.\u201d<\/p>\n

He noted that \u201cChina declared all cryptocurrency activities illegal last September\u201d and Russia\u2019s central bank has proposed \u201ca ban on crypto trading and mining.\u201d<\/p>\n

Commenting on the Russian central bank\u2019s crypto ban proposal, Governor Matolcsy said:<\/p>\n

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I perfectly agree with the proposal and also support the senior EU financial regulator\u2019s point that the EU should ban the mining method used to produce new bitcoin.<\/p>\n<\/blockquote>\n

In January, the vice chairman of the Board of Supervisors of the European Securities and Markets Authority (ESMA), Erik Thed\u00e9en, called for an EU-wide ban<\/a> on cryptocurrency mining based on the proof-of-work concept.<\/p>\n

The governor of the Hungarian National Bank added that the Russian central bank \u201cis right\u201d in saying that \u201cThe breakneck growth and market value of cryptocurrencies is defined primarily by speculative demand for future growth, which creates bubbles.\u201d<\/p>\n

He emphasized: \u201cThe 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.\u201d Governor Matolcsy further opined:<\/p>\n

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It is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids.<\/p>\n<\/blockquote>\n

Russia\u2019s central bank proposed<\/a> in January to outlaw all cryptocurrency operations in the country. \u201cCryptocurrencies also have aspects of financial pyramids, because their price growth is largely supported by demand from new entrants to the market,\u201d according to the report published by the Bank of Russia.<\/p>\n

However, the crypto ban proposal by the central bank was met with opposition<\/a> as the Russian government, parliament, and even law enforcement departments are reportedly not willing to back the proposal.<\/p>\n

Russian President Vladimir Putin subsequently urged<\/a> 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> a plan to regulate cryptocurrency.<\/p>\n

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.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

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