Hungary’s Central Bank Governor Calls for Crypto Ban in Europe

Last September, China imposed a blanket ban on all cryptocurrency activities and just recently, the Bank of Russia also called on the country’s lawmakers to take a China-like crypto ban decision.

Banning Crypto in Europe

Hungary’s Central Bank Governor, György Matolcsy on Friday said that he supports the move by Russia’s apex bank and has called on the European Union (EU) to make a similar decision.

“I perfectly agree with the proposal and also support the senior EU financial regulator’s point that the EU should ban the mining method used to produce most new bitcoin,” Matolcsy said.

Stating the reason for his proposal, Matolcsy noted that crypto can be used in facilitating illegal activities and to create financial pyramids.

He reiterated Russia’s central bank statement that the pace at which the crypto market is growing is caused by speculative demand for future growth which will inevitably create a bubble. 

Matolcsy then called on the EU to join hands together in preventing the build-up of such bubbles. He added that companies and investors in the region would be allowed to own digital assets abroad, but regulators would track their holdings. 

It is worth noting that Russia’s central bank has now made a U-turn on its cryptocurrency ban decision after coming to a consensus with the country’s government and will draft a bill by February 18, that will recognize crypto assets as a legal form of currency.

Europe – The World’s Largest Crypto Economy

Despite the backlash and strict approach that crypto has faced from financial regulators across Europe, the emerging asset class remains widely used and adopted by Europeans.

According to data revealed last September by popular crypto analytic firm Chainalysis, Central, Northern, & Western Europe (CNWE) is the world’s biggest cryptocurrency economy.

After being ranked second in 2020, the region received over $1 trillion worth of cryptocurrencies in a period of one year, which accounts for a significant 25% of global activity.

Meanwhile, as the tough regulatory stance on crypto continues among European countries, UK watchdogs recently revealed plans to toughen regulatory guidelines for crypto advertisements.