Gyorgy Matolcsy, the Governor of the National Bank of Hungary, has recently proposed a blanket ban on all crypto mining and trading operations throughout the EU. The Governor cited the recent ban on crypto by China in a blog post that was then shared by the central bank in the country- the Magyar Nemzeti Bank, which was further titled “Time has come to ban crypto trading and mining in the EU”.
He also went on to point out that the proposal from the central bank of Russia called for a blanket ban on all forms of domestic cryptocurrency mining and trading. Reciprocating these proposals for a ban on crypto, Matolcsy mentioned that he agreed with the proposal and also supported the point of the senior financial regulator for the EU.
Hungary Will Be Following The Example Set By Russia and China
The Governor of Hungary’s National Bank strongly believes that the potential of cryptocurrency to service illegal activities while tending to create financial pyramids is too high. He also highlighted some of the concerns which were raised by the central bank of Russia- that the market value in cryptocurrency has always been determined by the speculative demand for growth in the future- which would definitely create bubbles.
To put all these succinctly, the Governor of the National Bank of Hungary called for a complete ban on cryptocurrencies in order to counter the risks faced by investors while relating to bubbles and financial pyramids. He stated that the citizens and companies in the EU would be allowed to purchase and own cryptocurrencies abroad, with regulators tracking their holdings.
This comes as quite a shock, considering the sculpture of Bitcoin’s anonymous founder- Satoshi Nakamoto was unveiled in Hungary back in 2021. In the ceremony, Debreczeni Barnabas, the CEO of the crypto exchange in the country, spoke about how Nakamoto had paved the way for decentralizing financial institutions.