The governor of Hungary’s Central Bank, Gyorgy Matolcsy, has proposed a complete ban on crypto trading and mining in the European Union.

Governor Matolcsy Agrees with Russia’s Crypto Ban Proposal

Matolcsy agrees with Russia’s Central Bank, which had also recommended the same on January 20, 2022. The Russian report stated that cryptocurrencies have aspects of financial pyramids because new entrants in the market primarily influence the price growth of these digital tokens.

Hungarian Central Bank Governor Matolcsy remarked that he perfectly agreed with Russia’s proposal and supports the senior EU financial regulator’s point over banning Bitcoin mining.

Earlier this year, the Vice Chairman of the Board of Supervisors of the European Securities and Markets Authorities also mentioned the need for a crypto ban. Erik Thedeen said an EU-wide ban on crypto mining is necessary based on the proof-of-work concept.

The governor of Hungary’s central bank supports a crypto ban because digital coins service illegal activities and build up financial pyramids.

In a blog posted by the Hungarian central bank, Governor Matolcsy cited China’s crypto ban, which he believes the EU should mimic. He also mentioned that cryptocurrencies are characterized by breakneck growth and a market value defined primarily by speculative demand for future growth.

According to the Hungarian central bank governor, such features create bubbles. Thus, the EU should issue a blanket ban on cryptocurrencies to protect investors. Governor Matolcsy suggested that citizens and companies be allowed to own crypto outside the EU after the ban. Then, the regulatory agencies should go forward and track these holdings.

Russia Settled on Regulating Over Outlawing

Although Russia’s initial proposal was a blanket ban on cryptocurrency, its national bank recently changed its mind. According to the monetary authority, regulating cryptocurrencies may be more beneficial than outlawing them.

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