Hungarian National Bank calls to ban crypto. To what avail?

Hungarian National Bank calls to ban crypto. To what avail?

Central Bank vs Finance Ministry opposition on the crypto issue is growing stronger across countries.

After India and Russia, where Finance Ministers resisted their respective Central Banks’ urges to ban crypto, it may now be Hungary’s turn.

This Central European country is famous not only for its beautiful architecture, but also for the statue of Satoshi Nakamoto installed last year. Also, on the initiative of its Finance Minister, last year the country cut taxes on crypto gains from around 30% to 15% – making it one of the lowest rates in Europe.

As most Central Bankers, quite rightfully worrying about the future of their job in a crypto era, Hungarian National Bank does not share the enthusiasm. Yesterday its governor proposed a blanket ban on crypto trading and mining, and not only in Hungary, but across the whole European Union ?

The Governor’s chances to succeed are quite small, in our opinion, but his actions are likely to stir up more debates in the country, including with its Finance Ministry, and all this could end up in a comprehensive crypto legal framework, still absent in Hungary ⚖️

Crypto regulation is a long process, and it is a good thing that more and more countries are starting it.