China declared all cryptocurrency activities illegal last September and Russia’s central bank proposes ban on crypto trading and mining /Max Seddon and Eva Szalay, Jan 20 2022, FT/.
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.
It is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids. Russia’s central bank is right saying that “the breakneck growth and market value of cryptocurrencies is defined primarily by speculative demand for future growth, which creates bubbles”.
The EU should act together in order to preempt the building up of new financial pyramids and financial bubbles. EU citizens and companies would be allowed to own cryptocurrencies abroad and regulators will track their holdings.
Governor Matolcsy, MNB, the Central Bank of Hungary
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