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The head of Hungary’s central bank is in favour of a crypto ban

There should be a ban on crypto trading and mining in Hungary, says the governor of the Central Bank, György Matolcsy. This week, Governor Matolcsy said that he agreed with the Bank of Russia’s plan to ban both trading and mining of cryptocurrencies.

Central Bank Governor agrees with Ban

There is support for a ban on cryptocurrencies in Europe again this time, this time in the country of Hungry.

This is what György Matolcsy, the governor of Hungary’s Central Bank, said today. He said that he agreed with the Russian Central Bank’s proposal to ban crypto investing and mining that was made on Jan. 20. He also said he was in favour of the proposed ban on Proof-of-Work mining put forward by one of the most important EU regulators on Jan. 19, when he spoke.

Matolcsy was worried about how cryptocurrencies could be used for illegal things. He said it was “clear-cut that cryptocurrencies could be used for illegal things.” As for the growth of “financial pyramids,” he was also worried about that. The Bank of Russia warned that “bubbles” could form because of the “breakneck growth and market value of cryptocurrencies…defined primarily by speculative demand for future growth.”

Governor Matolcsy said that the EU needed to work together to stop “the building up of new financial pyramids and financial bubbles.” If regulators could “track” the holdings of people and businesses from the EU, they would be able to own cryptocurrency outside of the EU, but only if they could.

In January, the vice-chair of the European Securities and Markets Authority, Erik Thedéen, said that he was in favour of a Proof-of-Work ban for different reasons than the governor of the Central Bank of Hungary. Matolcsy, who is thought to be the top EU regulator, said that he would support him. Thedéen argued for a ban on Proof-of-Work because of environmental concerns, not because of the mostly financial concerns that Matolcsy talked about, which is what Thedéen did.

This is what Matolcsy did: He agreed with the Bank of Russia, which said that on Jan. 20, they should stop people from mining or trading crypto. Even though Russia’s government agencies and authorities seemed to disagree with the central bank’s plan the next week, they chose regulations without a ban. Last week, Russia’s Ministry of Finance seemed to back up the idea that regulation was better than a ban. They said that crypto should be legal and that banks should be allowed to trade cryptocurrencies.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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