Hungary’s Central Bank Chief Supports Crypto Ban

György Matolcsy, the governor of Hungary’s Central Bank, has joined the Bank of Russia in proposing a ban on cryptocurrency trade and mining. Matolcsy also stated his support for the top EU regulator who proposed the Proof-of-Work ban, despite the fact that the regulator did so for environmental grounds, as opposed to Matolcsy.

Support for a cryptocurrency ban is resurfacing in Europe, this time in Hungary.

György Matolcsy, governor of Hungary’s Central Bank, stated today that he supports the Russian Central Bank’s plan to ban crypto trading and mining, which was announced on January 20. Governor Matolcsy also stated his support for a planned ban on Proof-of-Work mining suggested by a key EU regulator on January 19.

Matolcsy voiced worry about the role of cryptocurrencies in unlawful activity, stating that it was “clear that cryptocurrencies could service illegal activities.” He also raised concern about the rise of “financial pyramids.” 

The governor referenced the Bank of Russia’s warning about “bubbles” arising from “the breakneck growth and market value of cryptocurrencies…defined primarily by speculative demand for future growth.”

Governor Matolcsy stated that EU unity was intended to stop “the formation of new financial pyramids and financial bubbles.” He did, however, highlight that EU residents and businesses “would be allowed to own cryptocurrencies abroad” if regulators could “track their holdings.”

Matolcsy supported the Bank of Russia’s position, which suggested a ban on cryptocurrency mining and trade on January 20. Nonetheless, the next week, Russian agencies and authorities seemed to overturn the central bank’s plan, choosing for rules rather than a ban. 

Last week, Russia’s Ministry of Finance appeared to support the notion that regulation was preferable to prohibition, pushing for cryptocurrency legality and allowing banks to trade cryptocurrencies.

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Patrick

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