Head of Hungarian Central Bank proposes banning cryptocurrency and mining in the EU

György Matolçi supported the Central Bank of Russia’s stance on digital assets, as well as China’s move, which entirely prohibited bitcoin trades.

György Matolcsy, the president of Hungary’s Central Bank, proposed a ban on cryptocurrency trading and mining in the European Union. Matolchi also backed a total ban on cryptocurrency transactions, which was implemented in China in September 2021.

“The Central Bank of Russia is right to say that “the rapid growth of their market value is determined primarily by speculative demand in anticipation of further growth of the exchange rate, which leads to the formation of a bubble,” the official said.

According to Matolchi, cryptocurrency can be used to facilitate criminal activities and contribute to the formation of financial pyramids. According to him, European people will be able to own digital assets in other countries, and regulators will keep an eye on their investments.

Previously, the Bank of Russia argued for a reduction in the number of Russian residents active in the cryptocurrency market, citing the risks that digital assets pose to the economy.

On January 20, the Central Bank issued a report for public discussion. It advocated a ban on the issue, circulation, and exchange of cryptocurrencies and the business of these operations in Russia.

The regulator also believes that it is necessary to prohibit the mining of digital assets and monitor Russians’ investments in bitcoin on overseas trading platforms.

In November 2021, the director of the Swedish Financial Supervisory Authority, Eric Tedeen, and the head of the Environmental Protection Agency, Björn Reisinger, made a joint statement calling for a ban on cryptocurrency mining based on the Proof-of-Work (PoW) algorithm in the European Union.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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