EU should ban crypto trading and mining, says Hungarian central bank chief

György Matolcsy, the Governor of the Central Bank of Hungary (MNB), wants to see the European Union (EU) ban crypto trading and mining.

In a press release published on the official website of the MNB, Matolcsy noted that it was time for the euro zone to take the difficult regulatory step.

According to him, cryptocurrencies can be used to perpetuate illegal activities. He also noted that the crypto space tends to "build financial pyramids," alluding to long-standing criticisms that crypto is a bubble.

"The EU should act together to prevent the formation of new financial pyramids and financial bubbles", he added.

He pointed to China's ban on crypto trading and mining in 2021 and the Russian central bank's proposal that the country should take similar action.

"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," he said. he said in the statement.

His comments on Russia, however, come days after Moscow and the Russian central bank reached an agreement to regulate cryptocurrencies.

It proposes that EU citizens and other investors could be allowed to access and own crypto assets outside of the block.

However, regulators would still track these holdings, the MNB chief added.

His comments come at a time when the EU has indicated that the development of a digital euro is on the right track.