Hungary’s Central Bank Backs EU Crypto Ban

The head of Hungary’s central bank says he supports a ban of cryptocurrency mining and trading in the European Union as the digital tokens could “service illegal activities and tend to build up financial pyramids.”

That’s according to CoinDesk, which reported Friday (Feb. 11) that György Matolcsy’s comments come in the wake of China’s move last year to outlaw all crypto activities and a recent proposal by the Bank of Russia to do the same there.

“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.

Russia’s central bank recently amended its position to backing regulations for cryptocurrency instead of an outright ban.

Read more: Russia Set to Propose Regulatory Plans for Crypto This Week

“It is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids,” Matolcsy wrote. “The EU should act together in order to preempt the building up of new financial pyramids and financial bubbles.”

He proposed that EU citizens and companies would be permitted to own cryptocurrencies outside the EU, with regulators tracking their holdings.

See also: Lawmaker Advocates for Canada to Attract Crypto Investment

This news comes as a lawmaker in Canada recommended her country’s finance minister establish a cryptocurrency framework to global attract investors.

Parliament Member Michelle Rempel Garner’s “Encouraging Growth of the Cryptoasset Sector Act” represents Canada’s first legislative entrance into the burgeoning crypto sector.

“Canada should be attracting billions of dollars of investment in this fast growing industry,” Garner said in a statement. “However, we’ve seen Canada lose crypto asset talent, innovators and business to other leading jurisdictions like the European Union and the United States.”

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