Tesla CEO, Elon Musk said the administration should “Do Nothing” in response to the question of whether the US government should regulate the cryptocurrency market?
Once again Musk supported cryptocurrencies as he said it is impossible for the governments to destroy the cryptocurrencies. However, he also believes that the government could be an obstruction to their growth. This statement from Elon Musk came from an annual code conference that was held in California. Elon believes that the biggest reason for Beijing’s crackdown against cryptocurrencies is the electricity generation issues in china. To his statement, he added “Part of it may actually be due to electricity shortages in many parts of China. He also said, “A lot of South China right now is having random power outages, because the power demand is higher than expected.” He further added ” crypto mining might be playing a role in that.
Earlier this year in September, China imposed a crackdown on cryptocurrencies, it declared all the transactions illegal that involve cryptocurrencies such as Bitcoin. However, cryptocurrencies transaction handlings have been banned in China since 2013 and the same orders have been issued in 2017 and 2019.
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Since 2019, cryptocurrency has been considered illegal in China. But, what concerned Beijing was that through Bitcoin Online people are still able to trade. Therefore, On May 18, a joint notice was issued by three financial self-regulatory bodies, that are, The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, announcing the ban on providing cryptocurrency services to customers directly or indirectly. They warned that there would be no protection if customers lost from cryptocurrency investment transactions. They also warned people by saying cryptocurrencies seriously violate people’s assets safety and are disrupting the normal economic and financial order. Read our complete guide on Best Ways to Invest Money – Complete Guide
Well, In 2017 also China issued the ban, but comparatively this year the rules are more strict, the new rules have expanded the scope of prohibited services. And, earlier this month on 24th September again China imposed a ban on transactions involving cryptocurrencies. The People’s Bank of China posted on its website that “virtual currency derivative transactions are illegal financial activities and are strictly prohibited.”
China believes that handling cryptocurrencies is a crime to nature and therefore its mining should be eliminated. Cryptocurrencies- handling in china will be considered as money laundering crime, according to the new notice that was issued on 24th September 2021. According to research in China, by 2024, China’s energy consumption from Bitcoin will exceed the total energy consumption in countries like Italy.
Even Elon Musk, who once commenced the sale of Tesla cars for Bitcoin Exchange, tweeted against Bitcoin last year. He tweeted that Tesla will no longer accept Bitcoin as a Payment due to environmental concerns. But, today when Beijing imposed a crackdown on cryptocurrencies, He kind of supported cryptos as he said that governments can do nothing except slowing down their advancements.
Well, what do you guys think? Do you also think that this is just a short time correction?