Central Bank of Hungary Supports EU Crypto Ban

The head of Hungary’s central bank said he supports a ban on cryptocurrency mining and trading in the European Union, as digital tokens could “serve illegal activities and tend to create pyramids financial”.

That’s according to CoinDesk, which reported on Friday, Feb. 11, that György Matolcsy’s comments follow China’s decision last year to ban all crypto activity and a recent Bank of Russia proposal to make the same there.

“I fully agree with the proposal and also support the view of the EU’s main financial regulator that the EU should ban the mining method used to produce most new bitcoins,” Matolcsy said. .

Russia’s central bank recently changed its stance to support cryptocurrency regulation instead of an outright ban.

Read more: Russia set to propose crypto regulatory plans this week

“It is clear that cryptocurrencies could serve illegal activities and tend to build financial pyramids,” Matolcsy wrote. “The EU should act together to prevent the formation of new financial pyramids and financial bubbles.”

He proposed that EU citizens and businesses be allowed to own cryptocurrencies outside the EU, with regulators tracking their holdings.

See also: Lawmaker makes case for Canada to attract crypto investment

This news comes as a Canadian lawmaker recommended that his country’s finance minister establish a cryptocurrency framework to attract global investors.

Member of Parliament Michelle Rempel Garner’s “Crypto-Asset Industry Growth Act” represents Canada’s first legislative entry into the burgeoning crypto sector.

“Canada stands to attract billions of dollars of investment in this fast-growing industry,” Garner said in a statement. “However, we have seen Canada lose talent, innovators and businesses in crypto assets to other top jurisdictions like the European Union and the United States.”

If passed, the law would require Canadian Finance Minister Chrystia Freeland to consult with industry experts to create regulations aimed at spurring innovation around cryptocurrencies. It would also require Freeland to report on the framework and introduce legislation within three years.

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