Hungarian National Bank Governor Is In Favor Of A Cryptocurrency Ban
György Matolcsy (the Governor of the National Bank of Hungary) supports a prohibition over cryptocurrency, after an earlier recommendation on the behalf of the monetary authority of Russia. He stated to be on the side of the proposal issued by the central bank of Russia to ban crypto mining as well as trading in the last month.
He focused on a unified EU method to tackle the financial hazards posed by crypto. According to him, unlawful activities could be performed through the utilization of cryptocurrencies, which results in the creation of financial pyramids.
He then referred to the monetary authority of Russia, which cautioned against the swelling market value as well as the rapid expansion of cryptocurrencies as the chief reasons behind the likely formation of bubbles. In his words, a collective effort should be done to anticipate the creation of the latest financial bubbles as well as financial pyramids.
Apart from this, he mentioned, some measures are being taken on the behalf of the financial regulator to prohibit the crypto mining method known as proof-of-work which demands excessive energy across the EU. Eventually, he agreed that the companies and the residents of the EU could have possession of crypto when being in the jurisdiction of some other countries and the holdings thereof would be tracked by the regulators.
Crypto debate in Russia
The central bank of Russia had firstly, in a document which was published in the previous month to discuss the participation of crypto in the financial sector of the country, proposed prohibiting the mining, exchange, as well as the utilization of crypto. It was announced by the bank that they consider it significant to establish a federal law, to put a ban over the circulation as well as the issuance of private digital assets in the Russian jurisdiction.
A unique regulatory agenda
Nonetheless, this got discarded in the coming week on the behalf of the finance ministry of Russia, which expressed to give preference to regulation rather than restrictions. The Finance Ministry is enthusiastically engaged in the advancement of the legislative endeavors for the regulation of the newly emerging market, as revealed by the director of the financial policy department, Ivan Chebseskov.
After a call from Vladimir Putin (the current present of Russia) to develop a consensus over the respective subject, the authorities got convinced on the designing a crypto regulation roadmap.
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