Hungary’s Central Bank Calls For Ban on Bitcoin Mining and Trading

As cryptocurrency becomes more and more acceptable, the calls to regulate the sector are growing. The latest in a growing number of central monetary entities which seek to ban cryptocurrencies is the Central Bank of Hungary. 

MNB’s Governor, György Matolcsy, has urged the country and the EU to ban bitcoin mining and trading. The Governor contended that cryptocurrencies could serve as a conduit for illicit activities.

The Governor was speaking at a press conference on February 11. The Governor of the Hungarian Central Bank urged a complete ban on all forms of trading in cryptocurrencies. The Governor repeated the oft-repeated argument that cryptocurrencies led to illegal activities and tended to build up financial pyramids.

The Governor cited the example of China, which has put a complete ban on anything related to cryptocurrencies. He also mentioned a recent proposal by the central bank of Russia that also wanted to prohibit the usage of digital assets. However, he ignored or was not aware that the Russian authorities had decided to regulate cryptocurrencies rather than ban them.

The statement by the Governor read, “The EU should act together 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.”

Following China’s decision to make all forms of cryptocurrencies illegal, Russia’s Central bank also proposed something similar. However, Russian authorities felt that the fallouts of banning cryptocurrencies were worse than the ill effects of cryptocurrencies. So now, the Russian Central Bank is regulating instead of banning cryptocurrencies.

Matolcsy proposed that EU citizens and companies would be allowed to own cryptocurrencies outside the EU, and regulators would track their holdings. However, Swedish authorities have also called for a ban on crypto mining in the EU over environmental concerns.