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When the world is moving towards cryptocurrency at a very fast pace, on the other side, the Governor of Hungary’s central bank has taken a big decision in the world of crypto assets. According to the sources, the governor has called for a ban on crypto mining and trading in the European Union. A statement has been shared by Gyorgy Matolcsy from The Hungarian National Bank, the central bank of Hungary. Gyory Matolcsy is a governor of the central bank and he declared that the time has come to ban crypto trading and mining in the EU.
He added,” It is clear-cut that cryptocurrency could illegal activities and tend up build up financial pyramids”. Along with this, he also noted that China country has also declared all the cryptocurrency activities illegal last year in September”. The Central Bank of Russia has proposed a ban on crypto trading and mining. The Governor of Hungary’s central bank also commented over the Russian central bank’s crypto ban proposal, he said,” 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”.
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Erik Thedeen, the vice-chairman of the Board of Supervisors of the European Securities and Markets Authority (ESMA) called for an EU-wide ban on cryptocurrency mining based on the proof-of-work concept. The governor of the Hungarian National Bank also stated that the Russian central bank is totally right to say that the whirlwind growth and market value of cryptocurrencies is defined primarily by speculative demand for future growth, which creates bubbles in the future.
He highlighted,” The 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”. The Central Bank of Russia suggested outlawing all cryptocurrency operations in the country in January 2022. According to the reports published by the Bank of Russia, it reads,” Cryptocurrencies also have aspects of financial pyramids, because their price growth is largely supported by demand from new entrants to the market”.
The proposal of the crypto ban by the central bank was met with opposition as the Russian government, law enforcement departments, and parliament, are not ready to take back the proposal. Stay tuned for more updates.
