Indonesia's Islamic organisation Nahdlatul Ulama in East Java has issued a "fatwa" against the use of cryptocurrency in the country declaring it forbidden under Islamic law.

The religious body reached the decision after a discussion as it&nbsp;reportedly said&nbsp;the use of cryptocurrency is&nbsp;not legal under Islamic Sharia law.

<a href="https://www.wionews.com/science/cryptocurrency-spacex-to-accept-dogecoin-as-payment-for-doge-1-mission-to-the-moon-next-year-384084">Also Read:&nbsp;SpaceX to accept Dogecoin as payment for 'DOGE-1 Mission' to the moon next year</a>

The move comes as Indonesians have shown a huge interest in the new digital currency as reports claim the country will not ban cryptocurrencies, however, it will ensure it is not used for illegal activities.

Indonesia's minister of trade Muhammad Luthfi had asserted that although it wouldn't prohibit&nbsp;cryptocurrencies&nbsp;but the regulations will be tightened.

<a href="https://www.wionews.com/technology/south-korea-to-clamp-down-on-cryptocurrency-phishing-activity-383873">Also Read:&nbsp;South Korea to clamp down on cryptocurrency phishing activity&nbsp;</a>

Reports say bitcoin, dogecoin and ethereum are considered assets in Indonesia which can be traded but cannot be used as means of payment. Domestic exchanges in the country have been witnessing a boom in cryptocurrency with millions of citizens involved in trading.

Last month Bitcoin futures exchange-traded fund (ETF) was launched on the New York Stock Exchange as its value hit a new high to reach above $66,000. The currency had gained 50 per cent last month and reportedly 450 per cent over the past year.

The currency had fallen drastically in May after China&nbsp;had cracked down on trading and mining cryptocurrencies. However, El Salvador declared it a legal tender in September.

<a href="https://www.wionews.com/world/turkey-adds-cryptocurrency-exchanges-to-terror-funding-rules-382183">Also Read:&nbsp;Turkey adds cryptocurrency exchanges to terror funding rules&nbsp;</a>

The US Treasury Department had earlier expressed concern over the rise of cryptocurrencies as it pointed out that it could undermine the effectiveness of sanctions. The department said it faces "new challenges including rising risks from new payments systems, the growing use of digital assets, and cybercriminals."

(With inputs from Agencies)

Indonesia's Islamic organisation Nahdlatul Ulama in East Java has issued a "fatwa" against the use of cryptocurrency in the country declaring it forbidden under Islamic law.

Indonesia's Islamic organisation Nahdlatul Ulama in East Java has issued a "fatwa" against the use of cryptocurrency in the country declaring it forbidden under Islamic law. The religious body reached the decision after a discussion as it reportedly said the use of cryptocurrency is not legal under Islamic Sharia law. Also Read: SpaceX to accept Dogecoin as payment for 'DOGE-1 Mission' to the moon next year The move comes as Indonesians have shown a huge interest in the new digital currency as reports claim the country will not ban cryptocurrencies, however, it will ensure it is not used for illegal activities. Indonesia's minister of trade Muhammad Luthfi had asserted that although it wouldn't prohibit cryptocurrencies but the regulations will be tightened. Also Read: South Korea to clamp down on cryptocurrency phishing activity Reports say bitcoin, dogecoin and ethereum are considered assets in Indonesia which can be traded but cannot be used as means of payment. Domestic exchanges in the country have been witnessing a boom in cryptocurrency with millions of citizens involved in trading. Last month Bitcoin futures exchange-traded fund (ETF) was launched on the New York Stock Exchange as its value hit a new high to reach above $66,000. The currency had gained 50 per cent last month and reportedly 450 per cent over the past year. The currency had fallen drastically in May after China had cracked down on trading and mining cryptocurrencies. However, El Salvador declared it a legal tender in September. Also Read: Turkey adds cryptocurrency exchanges to terror funding rules The US Treasury Department had earlier expressed concern over the rise of cryptocurrencies as it pointed out that it could undermine the effectiveness of sanctions. The department said it faces "new challenges including rising risks from new payments systems, the growing use of digital assets, and cybercriminals." (With inputs from Agencies)

Islamic organisation in Indonesia declares fatwa against cryptocurrency; says it is against Sharia law

The Wharton School at the University of Pennsylvania, one of the Ivy League institutions&nbsp;in the US, is planning to accept cryptocurrency as fee for its new executive education programme.

The premier business school will be accepting cryptocurrencies&nbsp;as a payment method for its online blockchain and digital assets programme.

Tuition for the “Economics of Blockchain and Digital Assets” programme can be paid in Bitcoin, Ether and USDC,&nbsp;according to the brochure. The six-week programme was developed in partnership with Prysm Group, a blockchain economic consulting firm.

The Philadelphia-based school, which is scheduled to open in January and is expected to attract thousands of students each year, offers the online course at $3,800.

The Wharton School is the latest to join the list of universities accepting cryptocurrencies. In May, the University of Pennsylvania received the largest cryptocurrency gift in its history, $5 million from an anonymous donor.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/el-salvador-legalises-bitcoin-as-other-nations-plan-similar-moves-390658">El Salvador legalises Bitcoin as other nations plan similar moves</a>

In 2014, the Massachusetts Institute of Technology famously gave out Bitcoin to its students in 2014. Other colleges have begun letting students use crypto to pay tuition.&nbsp;

A report in Bloomberg quoted Guido Molinari, the managing partner at Prysm Group, as saying, “It's a program about blockchain and digital assets, we felt that we should talk the talk and walk the walk.”

Wharton School has announced that it will use Coinbase Global Inc. to accept digital-asset payments. Coinbase Global Inc. is the largest cryptocurrency exchange in the US. The school is working with Prysm Group in order to develop the programme.

According to the programme’s brochure, PwC expects blockchain to boost global GDP by $1.8 trillion by 2030, indicating that the applications of this technology are only beginning to reveal themselves. In addition, Deloitte found that 83% of businesses are discussing or working on cryptocurrencies in the context of solutions or strategies.

Also read |&nbsp;<a href="https://www.wionews.com/technology/elon-musks-tesla-halts-bitcoin-purchases-amid-concerns-of-increasing-carbon-emissions-384647">Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions</a>

The Wharton School has many notable alums who are actively involved in the cryptocurrency ecosystem..

Tesla CEO Elon Musk graduated from the school in 1997 and has been a strong force in driving price swings of meme coins like Dogecoin. He has also pushed his companies Tesla and SpaceX to buy Bitcoin for their corporate treasuries.

Another graduate from the school is Arthur Hayes, who started the BitMex exchange for Bitcoin exchanges.

Notably, the school doesn’t have any other plans to accept crypto.

(With inputs from agencies)

The Wharton School at the University of Pennsylvania, one of the Ivy League institutions in the US, is planning to accept cryptocurrency as fee for its new executive education programme.

The Wharton School at the University of Pennsylvania, one of the Ivy League institutions in the US, is planning to accept cryptocurrency as fee for its new executive education programme. The premier business school will be accepting cryptocurrencies as a payment method for its online blockchain and digital assets programme. Tuition for the “Economics of Blockchain and Digital Assets” programme can be paid in Bitcoin, Ether and USDC, according to the brochure. The six-week programme was developed in partnership with Prysm Group, a blockchain economic consulting firm. The Philadelphia-based school, which is scheduled to open in January and is expected to attract thousands of students each year, offers the online course at $3,800. The Wharton School is the latest to join the list of universities accepting cryptocurrencies. In May, the University of Pennsylvania received the largest cryptocurrency gift in its history, $5 million from an anonymous donor. Also read | El Salvador legalises Bitcoin as other nations plan similar moves In 2014, the Massachusetts Institute of Technology famously gave out Bitcoin to its students in 2014. Other colleges have begun letting students use crypto to pay tuition. A report in Bloomberg quoted Guido Molinari, the managing partner at Prysm Group, as saying, “It's a program about blockchain and digital assets, we felt that we should talk the talk and walk the walk.” Wharton School has announced that it will use Coinbase Global Inc. to accept digital-asset payments. Coinbase Global Inc. is the largest cryptocurrency exchange in the US. The school is working with Prysm Group in order to develop the programme. According to the programme’s brochure, PwC expects blockchain to boost global GDP by $1.8 trillion by 2030, indicating that the applications of this technology are only beginning to reveal themselves. In addition, Deloitte found that 83% of businesses are discussing or working on cryptocurrencies in the context of solutions or strategies. Also read | Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions The Wharton School has many notable alums who are actively involved in the cryptocurrency ecosystem.. Tesla CEO Elon Musk graduated from the school in 1997 and has been a strong force in driving price swings of meme coins like Dogecoin. He has also pushed his companies Tesla and SpaceX to buy Bitcoin for their corporate treasuries. Another graduate from the school is Arthur Hayes, who started the BitMex exchange for Bitcoin exchanges. Notably, the school doesn’t have any other plans to accept crypto. (With inputs from agencies)

US Ivy League Wharton School to accept cryptocurrency payment for its online course

In what is believed to be one of the largest cryptocurrency thefts ever, hackers have returned roughly half of the $600 million they took.

A loophole in Poly Network, a platform that aims to connect multiple blockchains so that they may operate together, was exploited by cybercriminals.

Poly Network informed the hackers of the incident and requested that they communicate with them, encouraging them to return compromised assets.&nbsp;

A blockchain is a digital record that serves as the foundation for numerous cryptocurrencies.Each digital coin has its own blockchain, which is distinct from the rest. 
 
Poly Network promises to be able to connect all of these different blockchains.&nbsp;

Poly Network is a platform for decentralised money.DeFi is a wide word that refers to a range of financial applications based on blockchain technology that aim to eliminate middlemen like brokerages and&nbsp;exchanges. It's known as decentralised. &nbsp;

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"There`s so much public attention on this, and exchanges will be on the lookout for customer deposits linked to this theft," Elliptic's Robinson said.

"This demonstrates that even if you can steal cryptoassets, laundering them and cashing out is extremely difficult, due to the transparency of the blockchain and the broad use of blockchain analytics by financial institutions."

The hacker or hackers sent a message with some of the returned coins appearing to ask for donations, Robinson added.

The stolen funds amount to more than the criminal losses registered by the entire DeFi sector from January to July of a record $474 million, according to a report from crypto intelligence company CipherTrace.

Proponents of DeFi say it offers people and businesses free access to financial services, arguing that the technology will cut costs and boost economic activity.

Yet it is mostly unregulated, with technical flaws and weaknesses in the code many platforms use, leaving it vulnerable to hacks and heists.

An executive from Tether - a stablecoin or type of cryptocurrency usually backed by real-world world assets - said on Twitter the company had frozen $33 million connected with the hack, and top management at large crypto exchanges responded to Poly Network saying they would also try to help.

(With inputs from agencies)

In what is believed to be one of the largest cryptocurrency thefts ever, hackers have returned roughly half of the $600 million they took. A loophole in Poly Network, a platform that aims to connect multiple blockchains so that they may operate together, was exploited by cybercriminals.

In what is believed to be one of the largest cryptocurrency thefts ever, hackers have returned roughly half of the $600 million they took. A loophole in Poly Network, a platform that aims to connect multiple blockchains so that they may operate together, was exploited by cybercriminals. Poly Network informed the hackers of the incident and requested that they communicate with them, encouraging them to return compromised assets. A blockchain is a digital record that serves as the foundation for numerous cryptocurrencies.Each digital coin has its own blockchain, which is distinct from the rest. Poly Network promises to be able to connect all of these different blockchains. Poly Network is a platform for decentralised money.DeFi is a wide word that refers to a range of financial applications based on blockchain technology that aim to eliminate middlemen like brokerages and exchanges. It's known as decentralised. pic.twitter.com/Yzw4oDenjC — Poly Network (@PolyNetwork2) August 10, 2021 × "There`s so much public attention on this, and exchanges will be on the lookout for customer deposits linked to this theft," Elliptic's Robinson said. "This demonstrates that even if you can steal cryptoassets, laundering them and cashing out is extremely difficult, due to the transparency of the blockchain and the broad use of blockchain analytics by financial institutions." The hacker or hackers sent a message with some of the returned coins appearing to ask for donations, Robinson added. The stolen funds amount to more than the criminal losses registered by the entire DeFi sector from January to July of a record $474 million, according to a report from crypto intelligence company CipherTrace. Proponents of DeFi say it offers people and businesses free access to financial services, arguing that the technology will cut costs and boost economic activity. Yet it is mostly unregulated, with technical flaws and weaknesses in the code many platforms use, leaving it vulnerable to hacks and heists. An executive from Tether - a stablecoin or type of cryptocurrency usually backed by real-world world assets - said on Twitter the company had frozen $33 million connected with the hack, and top management at large crypto exchanges responded to Poly Network saying they would also try to help. (With inputs from agencies)

Hackers return $260 million to crypto platform Poly Network after massive theft

Elon Musk said that electric-car maker Tesla will most likely restart accepting Bitcoin as payment once it conducts due diligence on the amount of renewable energy used to mine the currency.

World Business Watch: Elon Musk says Tesla 'most likely' to restart accepting Bitcoin

In a snub to El Salvador’s President Nayib Bukele, more than three-quarters of Salvadorans are skeptical of the maverick leader’s push to adopt the cryptocurrency bitcoin as parallel legal tender, according to a poll released on Thursday.

World Business Watch: Big Salvadoran majority skeptical of bitcoin as standard currency

El&nbsp;Salvador's President Nayib Bukele said in a national address on Thursday that a recently passed law making bitcoin&nbsp;legal&nbsp;tender&nbsp;will take effect on&nbsp;Sept. 7, noting that its use will be optional.

El&nbsp;Salvador's Congress already approved Bukele's proposal to embrace the cryptocurrency, making&nbsp;El&nbsp;Salvador&nbsp;the first country in the world to adopt&nbsp;bitcoin&nbsp;as&nbsp;legal&nbsp;tender.

"The use of&nbsp;bitcoin&nbsp;will be optional, nobody will receive&nbsp;bitcoin&nbsp;if they don't want it... If someone receives a payment in&nbsp;bitcoin&nbsp;they can choose to automatically receive it in dollars," said Bukele.

Salaries and pensions will continue to be paid in U.S. dollars, said Bukele, without specifying if that included salaries paid to state workers and private sector employees.

<a href="https://www.wionews.com/world/covid-19-delta-variant-is-infecting-vaccinated-people-says-israel-393811">Also Read |&nbsp;COVID-19: Delta variant is infecting vaccinated people, says Israel</a>

Earlier in the day, Athena&nbsp;Bitcoin&nbsp;said it plans to invest over $1 million to install some 1,500 cryptocurrency ATMs in&nbsp;El&nbsp;Salvador, especially where residents receive remittances from abroad.

According to Athena&nbsp;Bitcoin's website, the ATMs can be used to buy&nbsp;bitcoins or sell them for cash.

"One of the reasons we passed the&nbsp;bitcoin&nbsp;law is precisely to help people who send remittances," said Bukele, adding the high costs of commissions traditionally associated with sending money home would be&nbsp;eliminated by using the cryptocurrency.

El&nbsp;Salvador&nbsp;relies heavily on money sent back from workers abroad. World Bank data showed remittances to the country made up nearly $6 billion or around a fifth of gross domestic product (GDP) in 2019, one of the highest ratios in the world.

Less than 1% of the volume of global cross-border remittances are currently in cryptocurrency, according to Kenneth Suchoski, U.S payments and fintech analyst at Autonomous Research. But in the future crypto is expected to account for a larger slice of the more than $500 billion in global annual remittances.

El Salvador's President Nayib Bukele said in a national address on Thursday that a recently passed law making bitcoin legal tender will take effect on Sept. 7, noting that its use will be optional.

El Salvador's President Nayib Bukele said in a national address on Thursday that a recently passed law making bitcoin legal tender will take effect on Sept. 7, noting that its use will be optional. El Salvador's Congress already approved Bukele's proposal to embrace the cryptocurrency, making El Salvador the first country in the world to adopt bitcoin as legal tender. "The use of bitcoin will be optional, nobody will receive bitcoin if they don't want it... If someone receives a payment in bitcoin they can choose to automatically receive it in dollars," said Bukele. Salaries and pensions will continue to be paid in U.S. dollars, said Bukele, without specifying if that included salaries paid to state workers and private sector employees. Also Read | COVID-19: Delta variant is infecting vaccinated people, says Israel Earlier in the day, Athena Bitcoin said it plans to invest over $1 million to install some 1,500 cryptocurrency ATMs in El Salvador, especially where residents receive remittances from abroad. According to Athena Bitcoin's website, the ATMs can be used to buy bitcoins or sell them for cash. "One of the reasons we passed the bitcoin law is precisely to help people who send remittances," said Bukele, adding the high costs of commissions traditionally associated with sending money home would be eliminated by using the cryptocurrency. El Salvador relies heavily on money sent back from workers abroad. World Bank data showed remittances to the country made up nearly $6 billion or around a fifth of gross domestic product (GDP) in 2019, one of the highest ratios in the world. Less than 1% of the volume of global cross-border remittances are currently in cryptocurrency, according to Kenneth Suchoski, U.S payments and fintech analyst at Autonomous Research. But in the future crypto is expected to account for a larger slice of the more than $500 billion in global annual remittances.

Bitcoin to become legal tender in El Salvador from September

Bitcoin prices have gone down below $30,000 for the first time in nearly five months as China's latest crackdown on cryptocurrencies weighed.

Bitcoin drops below $30,000 for first time since January

Everyone has heard the latest buzz around cryptocurrency and bitcoin. People have seen prices skyrocket and plunge down to a painful low with the help of Elon Musk’s one tweet or China’s ban on bitcoin mining.

<h4>What is crypto mining?</h4>

Cryptocurrency is a digital currency that is secured using cryptography and is based on a decentralised network that needs to be mined. This is known as crypto mining.

It is the process of validating transactions of cryptocurrencies digitally, and the records of these are saved in form of blockchains, in which each and every transaction has a separate link to a subsequent transaction, which creates a chain of records.

Also read |&nbsp;<a href="https://www.wionews.com/technology/is-teslas-elon-musk-a-master-manipulator-of-markets-389229" hreflang="en">Is Tesla’s Elon Musk a master manipulator of markets?</a>

Mining a bitcoin is a difficult and complex process in which experts solve complicated cryptographic equations with the help of high-tech computer systems to gain cryptocurrencies.

<h4>How is crypto mining related to coal mining?</h4>

Recently, Elon Musk’s Tesla had started accepting bitcoins as a valid method of payment for products but Musk soon took a U-turn and stopped the new payment method as he feared crypto mining was negatively affecting the environment.

This raises the question that how does crypto mining, which is a code-based process, affect&nbsp;the environment.

Also read |&nbsp;<a href="https://www.wionews.com/world/musk-tweet-dents-bitcoin-but-weekly-gain-in-prospect-389363" hreflang="en">Musk tweet dents bitcoin, but weekly gain in prospect</a>

The software that mines bitcoin takes nearly 10 minutes for the network participants to unriddle the complex program and process a block. This process consumes a large chunk of electricity to generate every single bitcoin and the major part of the energy is consumed during the mining process.

Crypto mining often relies on electricity which is generated from fossil fuels. As a result of that, as the prices of bitcoin rise, there is a stark increase in energy consumption too. The increasing price of bitcoin motivates miners to mine more bitcoins, which attracts more people to join the new network, and the energy consumption keeps on alarmingly increasing.

A study by the University of Cambridge suggested that crypto mining consumes more than 120 Terawatt Hours (Twh) per year, and this could be one of the top contenders in the list of top 10 energy consumers around the globe if it was a country.

Also read |&nbsp;<a href="https://www.wionews.com/world/bitcoin-tumbles-below-40000-after-chinas-new-crypto-ban-386052" hreflang="en">Bitcoin tumbles below $40,000 after China's new crypto ban</a>

The situation has reached the level where companies are scouting for areas with cheaper electricity to make the crypto mining process tad cheaper and easier.

A few studies have also claimed that crypto mining could also produce enough carbon dioxide to push global warming to more than 2 °C.

While the disadvantages of crypto mining are as clear as the day, several groups are trying to come up with ideas to make cryptocurrencies more sustainable. A supporter of cryptocurrency and owner of Tesla and SpaceX, Elon Musk has also vowed to shift back to cryptocurrencies once they find a bitcoin that uses less than one per cent of the current energy.

Everyone has heard the latest buzz around cryptocurrency and bitcoin. People have seen prices skyrocket and plunge down to a painful low with the help of Elon Musk’s one tweet or China’s ban on bitcoin mining.

Everyone has heard the latest buzz around cryptocurrency and bitcoin. People have seen prices skyrocket and plunge down to a painful low with the help of Elon Musk’s one tweet or China’s ban on bitcoin mining. What is crypto mining? Cryptocurrency is a digital currency that is secured using cryptography and is based on a decentralised network that needs to be mined. This is known as crypto mining. It is the process of validating transactions of cryptocurrencies digitally, and the records of these are saved in form of blockchains, in which each and every transaction has a separate link to a subsequent transaction, which creates a chain of records. Also read | Is Tesla’s Elon Musk a master manipulator of markets? Mining a bitcoin is a difficult and complex process in which experts solve complicated cryptographic equations with the help of high-tech computer systems to gain cryptocurrencies. How is crypto mining related to coal mining? Recently, Elon Musk’s Tesla had started accepting bitcoins as a valid method of payment for products but Musk soon took a U-turn and stopped the new payment method as he feared crypto mining was negatively affecting the environment. This raises the question that how does crypto mining, which is a code-based process, affect the environment. Also read | Musk tweet dents bitcoin, but weekly gain in prospect The software that mines bitcoin takes nearly 10 minutes for the network participants to unriddle the complex program and process a block. This process consumes a large chunk of electricity to generate every single bitcoin and the major part of the energy is consumed during the mining process. Crypto mining often relies on electricity which is generated from fossil fuels. As a result of that, as the prices of bitcoin rise, there is a stark increase in energy consumption too. The increasing price of bitcoin motivates miners to mine more bitcoins, which attracts more people to join the new network, and the energy consumption keeps on alarmingly increasing. A study by the University of Cambridge suggested that crypto mining consumes more than 120 Terawatt Hours (Twh) per year, and this could be one of the top contenders in the list of top 10 energy consumers around the globe if it was a country. Also read | Bitcoin tumbles below $40,000 after China's new crypto ban The situation has reached the level where companies are scouting for areas with cheaper electricity to make the crypto mining process tad cheaper and easier. A few studies have also claimed that crypto mining could also produce enough carbon dioxide to push global warming to more than 2 °C. While the disadvantages of crypto mining are as clear as the day, several groups are trying to come up with ideas to make cryptocurrencies more sustainable. A supporter of cryptocurrency and owner of Tesla and SpaceX, Elon Musk has also vowed to shift back to cryptocurrencies once they find a bitcoin that uses less than one per cent of the current energy.

Crypto mining: How does digital currency manufacturing affect environment?

Bitcoin regained some ground on Tuesday, a day after touching a two-week low after China's central bank reaffirmed a crackdown on cryptocurrencies and restricted trading channels for Chinese residents. 
 
The world's largest crypto currency was last up 4.58% at $33,000, having dropped more than 10% on Monday. Ether, the second-biggest crypto currency, was up 5.05% at $1,983 after hitting a five-week low the day before. 
 
Monday's sell-off was sparked by an announcement from the Peoples Bank of China saying it had summoned China's largest banks and payment firms urging them to crack down harder on cryptocurrency trading. 
 
"It basically says now OTC transactions are not legitimate... we are not allowed by the banks to transfer money for cryptocurrency purchases and sales," said Bobby Lee, founder and CEO of Ballet, a cryptocurrency wallet app, and formerly CEO of BTC China, China's first bitcoin exchange. 
 
Crypto exchanges were effectively pushed out of China by a 2017 rule change, but over the counter (OTC) platforms based-overseas sprung up to act as middlemen, receiving payment from people based in China and buying cryptocurrencies on their behalf. 
 
"Essentially this puts all the OTC platforms out of business," Lee said. 
 
However, Tuesday's price moves suggested Asian traders thought markets overnight had overreacted to the news. 
 
"A Chinese ban on cryptocurrencies isn't something new. The one that came out yesterday was almost a copy of a previous announcement, earlier this year," said Justin d'Anethan, head of exchange sales at crypto exchange operator EQONEX. 
 
"As always, leverage, large participants and fundamental events mean crypto can move dramatically," he said. Last month, three industry associations issued a ban on crypto-related financial services, but these bodies have much less clout than the PBOC.&nbsp;

Market participants said at the time that the earlier ban would be hard to enforce as banks and payment firms would struggle to identify crypto-related payments. However, following Monday's PBOC statement, banks including Agricultural Bank of China and Alipay, the ubiquitous payment platform owned by fintech giant Ant Group, said they would step up monitoring to root out crypto transactions. 
 
China's crackdown has also had a dramatic effect on bitcoin mining. The hashrate, which measures the processing power of the bitcoin network and shows how much mining is taking place, on Monday hit its lowest level since late 2020. 
 
Cryptomining is a big business in China, which accounts for over half of global bitcoin production. However, since the State Council's statement, bans on cryptomining have been issued in major bitcoin mining hubs, including Sichuan, Xinjiang, and Inner Mongolia.

Bitcoin regained some ground on Tuesday, a day after touching a two-week low after China's central bank reaffirmed a crackdown on cryptocurrencies and restricted trading channels for Chinese residents.

Bitcoin regained some ground on Tuesday, a day after touching a two-week low after China's central bank reaffirmed a crackdown on cryptocurrencies and restricted trading channels for Chinese residents. The world's largest crypto currency was last up 4.58% at $33,000, having dropped more than 10% on Monday. Ether, the second-biggest crypto currency, was up 5.05% at $1,983 after hitting a five-week low the day before. Monday's sell-off was sparked by an announcement from the Peoples Bank of China saying it had summoned China's largest banks and payment firms urging them to crack down harder on cryptocurrency trading. "It basically says now OTC transactions are not legitimate... we are not allowed by the banks to transfer money for cryptocurrency purchases and sales," said Bobby Lee, founder and CEO of Ballet, a cryptocurrency wallet app, and formerly CEO of BTC China, China's first bitcoin exchange. Crypto exchanges were effectively pushed out of China by a 2017 rule change, but over the counter (OTC) platforms based-overseas sprung up to act as middlemen, receiving payment from people based in China and buying cryptocurrencies on their behalf. "Essentially this puts all the OTC platforms out of business," Lee said. However, Tuesday's price moves suggested Asian traders thought markets overnight had overreacted to the news. "A Chinese ban on cryptocurrencies isn't something new. The one that came out yesterday was almost a copy of a previous announcement, earlier this year," said Justin d'Anethan, head of exchange sales at crypto exchange operator EQONEX. "As always, leverage, large participants and fundamental events mean crypto can move dramatically," he said. Last month, three industry associations issued a ban on crypto-related financial services, but these bodies have much less clout than the PBOC. Market participants said at the time that the earlier ban would be hard to enforce as banks and payment firms would struggle to identify crypto-related payments. However, following Monday's PBOC statement, banks including Agricultural Bank of China and Alipay, the ubiquitous payment platform owned by fintech giant Ant Group, said they would step up monitoring to root out crypto transactions. China's crackdown has also had a dramatic effect on bitcoin mining. The hashrate, which measures the processing power of the bitcoin network and shows how much mining is taking place, on Monday hit its lowest level since late 2020. Cryptomining is a big business in China, which accounts for over half of global bitcoin production. However, since the State Council's statement, bans on cryptomining have been issued in major bitcoin mining hubs, including Sichuan, Xinjiang, and Inner Mongolia.

Bitcoin recoups some losses in Asia after plunging on Chinese crackdown

Whether it was gangsters a century ago speeding off in faster getaway cars or terrorists and hackers in recent decades who shielded their communications through encrypted apps, criminals have perennially exploited technology to stay a step ahead of law enforcement.

The FBI struck back in the past week with a pair of victories: a seizure of most of the $4 million ransom in Bitcoin that Russian hackers extorted from a US pipeline operator and the announcement of a yearslong sting operation where thousands of suspects were duped into using a messaging app secretly controlled by authorities. More than 800 people were arrested in more than a dozen countries.

Also read |&nbsp;<a href="https://www.wionews.com/world/el-salvador-legalises-bitcoin-as-other-nations-plan-similar-moves-390658">El Salvador legalises Bitcoin as other nations plan similar moves</a>

The breakthroughs came in part because law enforcement officials learned how to leverage two rapidly advancing technologies — encryption and cryptocurrencies — that had previously been a boon for criminals.

Yet the events did little to fundamentally alter the challenges for authorities in an increasingly digital world, according to former law enforcement officials, prosecutors, historians and technology experts. The global sting is highly unlikely to keep criminals from using encryption and could encourage them to go even further underground, experts said. And while the FBI has shown that it can recover stolen cryptocurrencies, doing so requires resources beyond the reach of most law enforcement agencies.

Ultimately, the cases were the latest iteration in the decades-long back and forth between lawbreakers and the FBI in which both sides have seized on technological advances, whether it is criminals hiding behind encryption or investigators exploiting facial recognition, drones and other mechanisms.

Also read |&nbsp;<a href="https://www.wionews.com/technology/uk-police-accidentally-discover-bitcoin-mine-while-searching-for-cannabis-warehouse-388213">UK police accidentally discover Bitcoin mine while searching for cannabis warehouse</a>

“You get a sharper sword; they get a stronger shield. The greed of the bad guys is always stronger than the reach of the good guys,” said Tim Weiner, author of “Enemies: A History of the FBI.” “That’s not just the story of the FBI; it’s been true throughout the history of warfare.”

Now law enforcement agencies are seeking more access to digital devices, sometimes buying hacking tools from the private sector, and urging lawmakers to give them more power to track suspects.

“This does not end the debate on encryption,” said Joseph DeMarco, a former federal prosecutor in Manhattan who has spent years working on cybercrime. “It shows that law enforcement is willing to design flanking maneuvers to go around encryption obstacles. But the debate about whether or not those workarounds are adequate will continue.”

Also read |&nbsp;<a href="https://www.wionews.com/technology/elon-musks-tesla-halts-bitcoin-purchases-amid-concerns-of-increasing-carbon-emissions-384647">Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions</a>

Law Enforcement Gains

Technology has not been all bad for the police. Beyond facial recognition and drones, authorities in the United States use gunshot detectors and devices that simulate cell towers to surreptitiously connect to suspects’ phones and determine their location.

Law enforcement also has an advantage when it gets hold of digital devices. Despite claims from Apple, Google and even the Justice Department that smartphones are largely impenetrable, thousands of law enforcement agencies have tools that can infiltrate the latest phones to extract data.

“Police today are facing a situation of an explosion of data,” said Yossi Carmil, CEO of Cellebrite, an Israeli company that has sold data extraction tools to more than 5,000 law enforcement agencies, including hundreds of small police departments across the United States. “The solutions are there. There is no real challenge to accessing the data.”

Also read |&nbsp;<a href="https://www.wionews.com/world/trump-administration-secretly-seized-phone-records-of-times-reporters-389303">Trump administration secretly seized phone records of Times reporters</a>

The police also have an easier time getting to data stored in the cloud. Technology companies like Apple, Google and Microsoft regularly turn over customers’ personal data, such as photographs, emails, contacts and text messages, to authorities with a warrant.

From January 2013 through June 2020, Apple said, it turned over the contents of tens of thousands of iCloud accounts to US law enforcement in 13,371 cases.

And Friday, Apple said that in 2018, it had unknowingly turned over to the Justice Department the phone records of congressional staff members, their families and at least two members of Congress, including Rep. Adam Schiff, D-Calif., now the chair of the House Intelligence Committee. The subpoena was part of an investigation by the Trump administration into leaks of classified information.

Also read |&nbsp;<a href="https://www.wionews.com/world/apple-is-said-to-have-turned-over-data-on-trumps-white-house-counsel-in-2018-391445">Apple is said to have turned over data on Trump’s White House counsel in 2018</a>

Challenge of Encryption

Yet intercepting communications has remained a troublesome problem for the police. While criminals used to talk over channels that were relatively simple to tap — like phones, emails and basic text messages — most now use encrypted messengers, which are not.

Two of the world’s most popular messaging services, Apple’s iMessage and Facebook’s WhatsApp, use so-called end-to-end encryption, meaning only the sender and receiver can see the messages. Not even the companies have access to their contents, allowing Apple and Facebook to argue that they cannot turn them over to law enforcement.

Authorities’ frustration has prompted them to target smaller encrypted apps favoured by criminals. In July, the police in Europe said they hacked into one called EncroChat, leading to hundreds of arrests.

That pushed many criminals onto a new service, Anom. They had to buy specialized phones with few working features, aside from an app disguised as a calculator. With a code, it would turn into a messaging app, Anom, that claimed to be encrypted.

In fact, the FBI created Anom. The bureau and the Australian police started the operation by persuading an informant to distribute the devices to criminal networks, after which they caught on by word-of-mouth. After three years, Anom had more than 12,000 users.

Criminals felt so comfortable on the service that they stopped using coded language, sending photos of smuggled cocaine shipments and openly planning murders, the police said. And when authorities obtained court approval to surveil any Anom users, they could easily monitor their messages.

But when the police carried out hundreds of arrests and detailed the scheme to news cameras this past week, the ruse was over. Authorities were once again in the dark.

An Attractive Tool for Criminals

For years, Bitcoin and other digital currencies were the coin of choice for international criminal syndicates. The qualities that make cryptocurrencies attractive — decentralization and anonymity — make them great for theft, ransom and selling drugs.

Getting paid used to be the hardest part of holding something or someone hostage, said Ross Anderson, a cybersecurity researcher at the University of Cambridge who studies how the police and criminals use technology.

“It’s easy enough to grab the heiress or her dog, but the problem then is that when you threatened to cut her ear off and asked Mr. Rockefeller to send you a large suitcase full of dollar bills, the police tagged along, or they put a radio transmitter in it,” he said. “With Bitcoin, you can get actually quite substantial extortion amounts, like seven- and eight-figure sums, which can be delivered instantaneously to Russia or North Korea or wherever.”

That new model fueled a surge in ransomware attacks, where hackers take control of a person’s or company’s computers and demand a ransom. Recorded Future, a security company that tracks such attacks, estimated that last year, one attack occurred every eight minutes.

Ransomware attacks have recently hit hospitals, meatpackers, minor league baseball teams and the ferries to Martha’s Vineyard. Many companies pay the ransoms because it is easier and faster than alternative solutions, despite also giving hackers more incentive.

Yet the Colonial Pipeline case showed that the police could also use cryptocurrencies to their advantage. Each transaction is recorded in a public ledger, making the money traceable even as it travels from one anonymous account to the next. That means that law enforcement with enough money and know-how can typically hack into an account and snatch back the money.

But hacking can be expensive and time-consuming, leaving few agencies outside the FBI with the ability to do it.

The 21st-Century Fight

The history of the cat-and-mouse game between the police and criminals is long. In the 1920s, bandits realized that cars could allow them to rob a home or bank and quickly escape to the next county or state, where the police would be less interested in solving the crime.

“It took something like 50 years for the police to catch up with regional crime squads and police national computers and eventually with automatic plate number recognition,” Anderson said. “But for a while, the existence of the car meant that it was a fun time for the gangsters.”

Today, law enforcement’s eagerness to keep up has spawned a rapidly growing industry dedicated to extracting suspects’ communications data. Cellebrite, the Israeli company, said its sales increased 38 per cent in the first quarter to $53 million as more police departments bought its tools to hack into suspects’ phones.

At least 2,000 law enforcement agencies in all 50 states have such tools, including 49 of the 50 largest US police departments, according to Upturn, a Washington nonprofit that investigates how the police use technology.

Still, some of the nation’s top law enforcement officials have asked for more from tech companies and lawmakers. Cyrus Vance Jr., the Manhattan district attorney, told Congress in 2019 that data extraction tools were expensive and unreliable. They can sometimes take weeks or even years to crack into a phone, he said.

“There are many, many serious cases where we can’t access the device in the time period where it is most important for us,” Vance told lawmakers.

Apple said security researchers agreed that the iPhone is the most secure device on the market. Google declined to comment.

Whether it was gangsters a century ago speeding off in faster getaway cars or terrorists and hackers in recent decades who shielded their communications through encrypted apps, criminals have perennially exploited technology to stay a step ahead of law enforcement.

Whether it was gangsters a century ago speeding off in faster getaway cars or terrorists and hackers in recent decades who shielded their communications through encrypted apps, criminals have perennially exploited technology to stay a step ahead of law enforcement. The FBI struck back in the past week with a pair of victories: a seizure of most of the $4 million ransom in Bitcoin that Russian hackers extorted from a US pipeline operator and the announcement of a yearslong sting operation where thousands of suspects were duped into using a messaging app secretly controlled by authorities. More than 800 people were arrested in more than a dozen countries. Also read | El Salvador legalises Bitcoin as other nations plan similar moves The breakthroughs came in part because law enforcement officials learned how to leverage two rapidly advancing technologies — encryption and cryptocurrencies — that had previously been a boon for criminals. Yet the events did little to fundamentally alter the challenges for authorities in an increasingly digital world, according to former law enforcement officials, prosecutors, historians and technology experts. The global sting is highly unlikely to keep criminals from using encryption and could encourage them to go even further underground, experts said. And while the FBI has shown that it can recover stolen cryptocurrencies, doing so requires resources beyond the reach of most law enforcement agencies. Ultimately, the cases were the latest iteration in the decades-long back and forth between lawbreakers and the FBI in which both sides have seized on technological advances, whether it is criminals hiding behind encryption or investigators exploiting facial recognition, drones and other mechanisms. Also read | UK police accidentally discover Bitcoin mine while searching for cannabis warehouse “You get a sharper sword; they get a stronger shield. The greed of the bad guys is always stronger than the reach of the good guys,” said Tim Weiner, author of “Enemies: A History of the FBI.” “That’s not just the story of the FBI; it’s been true throughout the history of warfare.” Now law enforcement agencies are seeking more access to digital devices, sometimes buying hacking tools from the private sector, and urging lawmakers to give them more power to track suspects. “This does not end the debate on encryption,” said Joseph DeMarco, a former federal prosecutor in Manhattan who has spent years working on cybercrime. “It shows that law enforcement is willing to design flanking maneuvers to go around encryption obstacles. But the debate about whether or not those workarounds are adequate will continue.” Also read | Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions Law Enforcement Gains Technology has not been all bad for the police. Beyond facial recognition and drones, authorities in the United States use gunshot detectors and devices that simulate cell towers to surreptitiously connect to suspects’ phones and determine their location. Law enforcement also has an advantage when it gets hold of digital devices. Despite claims from Apple, Google and even the Justice Department that smartphones are largely impenetrable, thousands of law enforcement agencies have tools that can infiltrate the latest phones to extract data. “Police today are facing a situation of an explosion of data,” said Yossi Carmil, CEO of Cellebrite, an Israeli company that has sold data extraction tools to more than 5,000 law enforcement agencies, including hundreds of small police departments across the United States. “The solutions are there. There is no real challenge to accessing the data.” Also read | Trump administration secretly seized phone records of Times reporters The police also have an easier time getting to data stored in the cloud. Technology companies like Apple, Google and Microsoft regularly turn over customers’ personal data, such as photographs, emails, contacts and text messages, to authorities with a warrant. From January 2013 through June 2020, Apple said, it turned over the contents of tens of thousands of iCloud accounts to US law enforcement in 13,371 cases. And Friday, Apple said that in 2018, it had unknowingly turned over to the Justice Department the phone records of congressional staff members, their families and at least two members of Congress, including Rep. Adam Schiff, D-Calif., now the chair of the House Intelligence Committee. The subpoena was part of an investigation by the Trump administration into leaks of classified information. Also read | Apple is said to have turned over data on Trump’s White House counsel in 2018 Challenge of Encryption Yet intercepting communications has remained a troublesome problem for the police. While criminals used to talk over channels that were relatively simple to tap — like phones, emails and basic text messages — most now use encrypted messengers, which are not. Two of the world’s most popular messaging services, Apple’s iMessage and Facebook’s WhatsApp, use so-called end-to-end encryption, meaning only the sender and receiver can see the messages. Not even the companies have access to their contents, allowing Apple and Facebook to argue that they cannot turn them over to law enforcement. Authorities’ frustration has prompted them to target smaller encrypted apps favoured by criminals. In July, the police in Europe said they hacked into one called EncroChat, leading to hundreds of arrests. That pushed many criminals onto a new service, Anom. They had to buy specialized phones with few working features, aside from an app disguised as a calculator. With a code, it would turn into a messaging app, Anom, that claimed to be encrypted. In fact, the FBI created Anom. The bureau and the Australian police started the operation by persuading an informant to distribute the devices to criminal networks, after which they caught on by word-of-mouth. After three years, Anom had more than 12,000 users. Criminals felt so comfortable on the service that they stopped using coded language, sending photos of smuggled cocaine shipments and openly planning murders, the police said. And when authorities obtained court approval to surveil any Anom users, they could easily monitor their messages. But when the police carried out hundreds of arrests and detailed the scheme to news cameras this past week, the ruse was over. Authorities were once again in the dark. An Attractive Tool for Criminals For years, Bitcoin and other digital currencies were the coin of choice for international criminal syndicates. The qualities that make cryptocurrencies attractive — decentralization and anonymity — make them great for theft, ransom and selling drugs. Getting paid used to be the hardest part of holding something or someone hostage, said Ross Anderson, a cybersecurity researcher at the University of Cambridge who studies how the police and criminals use technology. “It’s easy enough to grab the heiress or her dog, but the problem then is that when you threatened to cut her ear off and asked Mr. Rockefeller to send you a large suitcase full of dollar bills, the police tagged along, or they put a radio transmitter in it,” he said. “With Bitcoin, you can get actually quite substantial extortion amounts, like seven- and eight-figure sums, which can be delivered instantaneously to Russia or North Korea or wherever.” That new model fueled a surge in ransomware attacks, where hackers take control of a person’s or company’s computers and demand a ransom. Recorded Future, a security company that tracks such attacks, estimated that last year, one attack occurred every eight minutes. Ransomware attacks have recently hit hospitals, meatpackers, minor league baseball teams and the ferries to Martha’s Vineyard. Many companies pay the ransoms because it is easier and faster than alternative solutions, despite also giving hackers more incentive. Yet the Colonial Pipeline case showed that the police could also use cryptocurrencies to their advantage. Each transaction is recorded in a public ledger, making the money traceable even as it travels from one anonymous account to the next. That means that law enforcement with enough money and know-how can typically hack into an account and snatch back the money. But hacking can be expensive and time-consuming, leaving few agencies outside the FBI with the ability to do it. The 21st-Century Fight The history of the cat-and-mouse game between the police and criminals is long. In the 1920s, bandits realized that cars could allow them to rob a home or bank and quickly escape to the next county or state, where the police would be less interested in solving the crime. “It took something like 50 years for the police to catch up with regional crime squads and police national computers and eventually with automatic plate number recognition,” Anderson said. “But for a while, the existence of the car meant that it was a fun time for the gangsters.” Today, law enforcement’s eagerness to keep up has spawned a rapidly growing industry dedicated to extracting suspects’ communications data. Cellebrite, the Israeli company, said its sales increased 38 per cent in the first quarter to $53 million as more police departments bought its tools to hack into suspects’ phones. At least 2,000 law enforcement agencies in all 50 states have such tools, including 49 of the 50 largest US police departments, according to Upturn, a Washington nonprofit that investigates how the police use technology. Still, some of the nation’s top law enforcement officials have asked for more from tech companies and lawmakers. Cyrus Vance Jr., the Manhattan district attorney, told Congress in 2019 that data extraction tools were expensive and unreliable. They can sometimes take weeks or even years to crack into a phone, he said. “There are many, many serious cases where we can’t access the device in the time period where it is most important for us,” Vance told lawmakers. Apple said security researchers agreed that the iPhone is the most secure device on the market. Google declined to comment.

Bitcoin and encryption: A race between criminals and the FBI

The World Bank said on Wednesday it could not assist El Salvador's&nbsp;bitcoin&nbsp;implementation given environmental and transparency drawbacks.

"We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes," said a World Bank spokesperson via email.

Also read |&nbsp;<a href="https://www.wionews.com/world/el-salvador-legalises-bitcoin-as-other-nations-plan-similar-moves-390658">El Salvador legalises Bitcoin as other nations plan similar moves</a>

"While the government did approach us for assistance on&nbsp;bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings."

Earlier on Wednesday, Salvadoran Finance Minister Alejandro Zelaya said the Central American country had sought technical assistance from the Bank as it seeks to use&nbsp;bitcoin&nbsp;as a parallel legal tender alongside the US&nbsp;dollar.

El Salvador's government did not immediately respond to a request from Reuters regarding the World Bank's decision.

The minister also said ongoing negotiations with the International Monetary Fund had been successful, although the IMF said last week it saw "macroeconomic, financial and legal issues" with the country's adoption of&nbsp;bitcoin.

Also read |&nbsp;<a href="https://www.wionews.com/world/el-salvador-becomes-the-first-country-to-adopt-bitcoin-as-legal-tender-after-passing-legislation-390314">El Salvador becomes the first country to adopt bitcoin as legal tender after passing legislation</a>

Zelaya said on Wednesday the IMF was "not against" the&nbsp;bitcoin&nbsp;implementation. The IMF did not respond to a request for comment.

Investors have recently demanded higher premiums to hold Salvadoran debt, on growing concerns over the completion of the IMF deal, the key to patching budget gaps through 2023.

On Wednesday, bonds sold off across the curve, with the 2032 issue down more than 2 cents at 96.25 cents on the dollar. The spread of Salvadoran debt to US&nbsp;Treasuries dipped to 705 basis points after hitting on Tuesday a four-month high of 725 bps.

"There is no fast track for a solution on an IMF program and even uncertainty on whether the&nbsp;bitcoin&nbsp;proposal is compatible with diplomatic US&nbsp;(or) multilateral relations," said Siobhan Morden, head of Latin America fixed-income strategy at Amherst Pierpont Securities in New York.

El Salvador this month became the first country to adopt&nbsp;bitcoin&nbsp;as legal tender, with President Nayib Bukele touting the cryptocurrency's potential as a remittance currency for Salvadorans overseas.

This month, Bukele also pulled out of an anti-corruption accord with the Organization of the American States, which dismayed the US&nbsp;government, as Washington looks to stem corruption in Central America as part of its immigration policy.

"The recognition of a 'Bukele' risk premium has probably done some permanent damage to investor sentiment," Morden said in her client note.

The market may be focusing too much on the news headlines, however, and not enough on the possibility of a deal with the IMF, said Shamaila Khan, head of EM debt strategies at AllianceBernstein in New York.

"It is important for El Salvador to get the IMF program done. If it was lost on them, they wouldn’t have the conversations," she said.

"Our view is too much risk is priced in at these levels."

The World Bank said on Wednesday it could not assist El Salvador's bitcoin implementation given environmental and transparency drawbacks. "We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes," said a World Bank spokesperson via email.

The World Bank said on Wednesday it could not assist El Salvador's bitcoin implementation given environmental and transparency drawbacks. "We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes," said a World Bank spokesperson via email. Also read | El Salvador legalises Bitcoin as other nations plan similar moves "While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings." Earlier on Wednesday, Salvadoran Finance Minister Alejandro Zelaya said the Central American country had sought technical assistance from the Bank as it seeks to use bitcoin as a parallel legal tender alongside the US dollar. El Salvador's government did not immediately respond to a request from Reuters regarding the World Bank's decision. The minister also said ongoing negotiations with the International Monetary Fund had been successful, although the IMF said last week it saw "macroeconomic, financial and legal issues" with the country's adoption of bitcoin. Also read | El Salvador becomes the first country to adopt bitcoin as legal tender after passing legislation Zelaya said on Wednesday the IMF was "not against" the bitcoin implementation. The IMF did not respond to a request for comment. Investors have recently demanded higher premiums to hold Salvadoran debt, on growing concerns over the completion of the IMF deal, the key to patching budget gaps through 2023. On Wednesday, bonds sold off across the curve, with the 2032 issue down more than 2 cents at 96.25 cents on the dollar. The spread of Salvadoran debt to US Treasuries dipped to 705 basis points after hitting on Tuesday a four-month high of 725 bps. "There is no fast track for a solution on an IMF program and even uncertainty on whether the bitcoin proposal is compatible with diplomatic US (or) multilateral relations," said Siobhan Morden, head of Latin America fixed-income strategy at Amherst Pierpont Securities in New York. El Salvador this month became the first country to adopt bitcoin as legal tender, with President Nayib Bukele touting the cryptocurrency's potential as a remittance currency for Salvadorans overseas. This month, Bukele also pulled out of an anti-corruption accord with the Organization of the American States, which dismayed the US government, as Washington looks to stem corruption in Central America as part of its immigration policy. "The recognition of a 'Bukele' risk premium has probably done some permanent damage to investor sentiment," Morden said in her client note. The market may be focusing too much on the news headlines, however, and not enough on the possibility of a deal with the IMF, said Shamaila Khan, head of EM debt strategies at AllianceBernstein in New York. "It is important for El Salvador to get the IMF program done. If it was lost on them, they wouldn’t have the conversations," she said. "Our view is too much risk is priced in at these levels."

World Bank rejects El Salvador request for help on bitcoin implementation

On Wednesday, Salvadoran Finance Minister Alejandro Zelaya said his country had approached the bank for technical assistance in order to implement bitcoin alongside the U.S. dollar

World Bank denies El Salvador’s request for implementation of Bitcoin

Bitcoin hit a two-week peak just shy of $40,000 on Monday, after another weekend reacting to tweets from Tesla boss Elon Musk, who fended off criticism over his market influence and said Tesla sold bitcoin but may resume transactions using it.

Bitcoin has gyrated to Musk's views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment. He later said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.

"When there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions," Musk said on Twitter on Sunday.

Bitcoin rallied more than 9% after that message, breaking above its 20-day moving average, and it climbed a tiny bit further in Asia to hit $39,838.92.

"The market had been going through another round of correction over the weekend ... until Elon Musk's tweet of accepting BTC again for Tesla purchases changed sentiment," said Bobby Ong, co-founder of crypto analytics website CoinGecko.

He said the market was also supported by software company and major bitcoin-backer MicroStrategy raising half a billion dollars to buy bitcoin.

Bitcoin is up about 33% this year but has collapsed from a record peak above $60,000 amid a regulatory crackdown in China and Musk's apparently wavering enthusiasm for it. Telsa stock is down about 30% since the company's bitcoin purchase.

Musk's tweet was made in response to an article based on remarks from Magda Wierzycka, head of cybersecurity firm Syngia, who in a radio interview last week accused him of "price manipulation" and selling a "big part" of his exposure.

"This is inaccurate," Musk said. "Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market."

Musk had tweeted in May that Tesla "will not be selling any bitcoin" and "has not sold any bitcoin," but investors are keenly awaiting Tesla's next earnings update - due next month - for any disclosure of changes to its position.

Musk has taken issue with the vast computing power required to process bitcoin transactions and in early June posted messages appearing to lament a breakup with bitcoin.

Other cryptocurrencies were steady after weekend gains, with ether at $2,491 and one-time Musk darling dogecoin buying about 32 U.S. cents on crypto exchange Binance.

Bitcoin hit a two-week peak just shy of $40,000 on Monday, after another weekend reacting to tweets from Tesla boss Elon Musk, who fended off criticism over his market influence and said Tesla sold bitcoin but may resume transactions using it.

Bitcoin hit a two-week peak just shy of $40,000 on Monday, after another weekend reacting to tweets from Tesla boss Elon Musk, who fended off criticism over his market influence and said Tesla sold bitcoin but may resume transactions using it. Bitcoin has gyrated to Musk's views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment. He later said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change. "When there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions," Musk said on Twitter on Sunday. Bitcoin rallied more than 9% after that message, breaking above its 20-day moving average, and it climbed a tiny bit further in Asia to hit $39,838.92. "The market had been going through another round of correction over the weekend ... until Elon Musk's tweet of accepting BTC again for Tesla purchases changed sentiment," said Bobby Ong, co-founder of crypto analytics website CoinGecko. He said the market was also supported by software company and major bitcoin-backer MicroStrategy raising half a billion dollars to buy bitcoin. Bitcoin is up about 33% this year but has collapsed from a record peak above $60,000 amid a regulatory crackdown in China and Musk's apparently wavering enthusiasm for it. Telsa stock is down about 30% since the company's bitcoin purchase. Musk's tweet was made in response to an article based on remarks from Magda Wierzycka, head of cybersecurity firm Syngia, who in a radio interview last week accused him of "price manipulation" and selling a "big part" of his exposure. "This is inaccurate," Musk said. "Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market." Musk had tweeted in May that Tesla "will not be selling any bitcoin" and "has not sold any bitcoin," but investors are keenly awaiting Tesla's next earnings update - due next month - for any disclosure of changes to its position. Musk has taken issue with the vast computing power required to process bitcoin transactions and in early June posted messages appearing to lament a breakup with bitcoin. Other cryptocurrencies were steady after weekend gains, with ether at $2,491 and one-time Musk darling dogecoin buying about 32 U.S. cents on crypto exchange Binance.

Bitcoin jumps after Musk says Tesla could use it again

China's crackdown on cryptocurrencies has spread to the country's southwest with a campaign against misuse of electricity by bitcoin miners in Yunnan province, local media reported on Saturday.

In addition to concerns about the huge amounts of energy needed for the computing power to create cryptocurrencies, the central government is also concerned about speculation after a surge in the price of bitcoin.

China accounts for over half of global bitcoin production, but some miners have been considering moving elsewhere after the State Council, China's cabinet, vowed to clamp down on bitcoin mining and trading last month.

The Energy Administration of Yunnan on Friday issued a notice ordering a probe into misappropriation and unauthorized use of electricity by bitcoin miners, vowing punishment, the Science and Technology Innovation Express News said.

A copy of the notice, which sets an end-June deadline, was circulating on Chinese social media. Calls to the Energy Administration of Yunnan were not answered on Saturday.

The probe in Yunnan, China's fourth-biggest bitcoin mining hub, follows restrictions in several other areas. The northwestern province of Qinghai and a district in neighbouring Xinjiang have ordered cryptocurrency mining projects to close.

Inner Mongolia has unveiled measures to root out crypto mining, while Sichuan is probing the industry.

An increasing number of Chinese crypto miners are considering folding the business in China, and moving offshore, said Lei Tong, managing director for financial services at Babel Finance, a Hong Kong-based crypto lender and asset manager.

China's crackdown on cryptocurrencies has spread to the country's southwest with a campaign against misuse of electricity by bitcoin miners in Yunnan province, local media reported on Saturday.

China's crackdown on cryptocurrencies has spread to the country's southwest with a campaign against misuse of electricity by bitcoin miners in Yunnan province, local media reported on Saturday. In addition to concerns about the huge amounts of energy needed for the computing power to create cryptocurrencies, the central government is also concerned about speculation after a surge in the price of bitcoin. China accounts for over half of global bitcoin production, but some miners have been considering moving elsewhere after the State Council, China's cabinet, vowed to clamp down on bitcoin mining and trading last month. The Energy Administration of Yunnan on Friday issued a notice ordering a probe into misappropriation and unauthorized use of electricity by bitcoin miners, vowing punishment, the Science and Technology Innovation Express News said. A copy of the notice, which sets an end-June deadline, was circulating on Chinese social media. Calls to the Energy Administration of Yunnan were not answered on Saturday. The probe in Yunnan, China's fourth-biggest bitcoin mining hub, follows restrictions in several other areas. The northwestern province of Qinghai and a district in neighbouring Xinjiang have ordered cryptocurrency mining projects to close. Inner Mongolia has unveiled measures to root out crypto mining, while Sichuan is probing the industry. An increasing number of Chinese crypto miners are considering folding the business in China, and moving offshore, said Lei Tong, managing director for financial services at Babel Finance, a Hong Kong-based crypto lender and asset manager.

China's cryptocurrency-mining crackdown spreads to Yunnan in southwest - Media

On Wednesday,&nbsp;El Salvador's legislature passed a law that designates Bitcoin legal tender. This makes it possible to pay taxes with Bitcoin, and businesses will now be obligated to accept Bitcoin payments, and converting Bitcoin to other currencies will no longer be subjected to capital-gains tax. With this law that will take effect in 90 days, El Salvador becomes the first country in the world to consider Bitcoin a legal currency.

<img alt="Cryptocurrency" data-entity-type="file" data-entity-uuid="1901c461-46c5-4078-b849-f8f1269d5196" src="//cdn.wionews.com/sites/default/files/inline-images/crypto.jpg" />

The advantage of being first might make El Salvador a tidy gain when investors and entrepreneurs alike flock to the nation, taking advantage of the good climate, lack of property tax, no capital-gains tax for Bitcoin, and immediate permanent residence for crypto entrepreneurs.

<img alt="Cryptocurrency" data-entity-type="file" data-entity-uuid="c6da70e5-6a28-4501-a2ef-2ebeeb1bf54e" src="//cdn.wionews.com/sites/default/files/inline-images/crypto%201_0.png" /> 
&nbsp;

After El Salvador's legislature has legalised Bitcoin and deemed it a currency, the road ahead looks bright for other developing countries in the region. It is not only the President of El Salvador who is positive towards crypto-currencies, but a lot of other leaders in Central and South American countries too.

Paraguay might be the second country to adopt Bitcoin, as the Deputy of the Nation Carlos Antonio Rejala Herman tweeted hints about adoption a few days back: “As I was saying, our country needs to advance hand-in-hand with the new generation. The moment has come, our moment. This week we start with an important project to innovate Paraguay in front of the world.”

Note the #BTC &amp; #PayPal in the tweet, could a collaboration be looming? Rejala also mentions 'to the moon' along with a picture of himself with laser eyes, a trend that caught on in the crypto currency community earlier this year.

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<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
Como ya lo decía hace un buen tiempo, nuestro país necesita avanzar de la mano de la nueva generación. 
Llegó el momento, nuestro momento. 
Esta semana empezamos con un proyecto importante para innovar a Paraguay frente al mundo! 
 
El verdadero to the moon ?<a href="https://twitter.com/hashtag/btc?src=hash&amp;ref_src=twsrc%5Etfw">#btc</a> &amp; <a href="https://twitter.com/hashtag/paypal?src=hash&amp;ref_src=twsrc%5Etfw">#paypal</a> <a href="https://t.co/ZMRJgAIxgO">pic.twitter.com/ZMRJgAIxgO</a>
— Carlitos Rejala ?￰ﾟﾇﾵ?￰ﾟﾙﾌ (@carlitosrejala) <a href="https://twitter.com/carlitosrejala/status/1401712725886132224?ref_src=twsrc%5Etfw">June 7, 2021</a></blockquote>
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<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

A move toward Bitcoin adoption could be very good for the economy of Paraguay, as the electricity is really cheap in the country and they produce more than twice as much electricity than what's used domestically, and they export power to both Argentina and Brazil at good rates. The cheap electricity, and positive legal outlook has led to the construction of one of the world's largest mining centers in the country.

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The Golden Goose Mining Center has been built on a 200,000m² site near the Laipu hydro-power plant in Paraguay. Stable and cheap hydro-power coming from this mega-sized dam, along with political stability, low taxes, support of foreign-funded enterprises, low risk of armed conflict with neighboring countries and high speed internet has made Paraguay tick all the boxes that mining companies are looking for when setting up operations.

Panama

Gabriel Silva is pushing for support and tweets, “This is important. And Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies We will be preparing a proposal to present at the Assembly. If you are interested in building it, you can contact me”.

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Esto es importante. Y Panamá no se puede quedar atrás. Si queremos ser un verdadero hub de tecnología y emprendimiento tenemos que apoyar las criptomonedas 
 
Estaremos preparando una propuesta para presentar en la Asamblea. Si están interesados en construirla me pueden contactarte <a href="https://t.co/yiAzPpD9nj">https://t.co/yiAzPpD9nj</a>
— Gabriel Silva (@gabrielsilva8_7) <a href="https://twitter.com/gabrielsilva8_7/status/1401965129051389958?ref_src=twsrc%5Etfw">June 7, 2021</a></blockquote>
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&nbsp;

Mexico&nbsp;

Senator Indira Kempis has also changed her twitter profile picture to one with laser eyes, along with many tweets supporting El Salvador's moves and the industry.

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<a href="https://t.co/h5iJ24TmNw">https://t.co/h5iJ24TmNw</a> <a href="https://t.co/pBKVLDp7E9">pic.twitter.com/pBKVLDp7E9</a>
— Indira Kempis de I. (@IndiraKempis) <a href="https://twitter.com/IndiraKempis/status/1402129280830742531?ref_src=twsrc%5Etfw">June 8, 2021</a></blockquote>
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&nbsp;

Eduardo Murat Hinojosa also sports the laser eyes, will propose a legal framework for cryptos in Mexico's lower house.

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Voy a promover y proponer ante la Cámara de Diputados un marco legal para las criptomonedas en México <a href="https://twitter.com/hashtag/btc?src=hash&amp;ref_src=twsrc%5Etfw">#btc</a> 
 
I will be promoting and proposing a legal framework for crypto coins in Mexico's lower house <a href="https://twitter.com/hashtag/btc?src=hash&amp;ref_src=twsrc%5Etfw">#btc</a> <a href="https://t.co/zwhYOZ7KAg">pic.twitter.com/zwhYOZ7KAg</a>
— Eduardo Murat Hinojosa (@eduardomurat) <a href="https://twitter.com/eduardomurat/status/1402257568580390923?ref_src=twsrc%5Etfw">June 8, 2021</a></blockquote>
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&nbsp;

Colombia

Jehudi Castro Sierra, Digital Transformation Adviser, Office of the Presidency of Colombia, contributed to the World Economic Forum's Decentralized Finance Policy-Maker toolkit and is calling for Colombia to embrace the emerging technology.&nbsp;

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Very pleased to have contributed to the Decentralized Finance: (DeFi) Policy-Maker Toolkit from <a href="https://twitter.com/wef?ref_src=twsrc%5Etfw">@wef</a> 
and <a href="https://twitter.com/Wharton?ref_src=twsrc%5Etfw">@Wharton</a>. 
DeFi is a great opportunity and Colombia is ready to embrace it. <a href="https://t.co/iih2IaPWm3">https://t.co/iih2IaPWm3</a>
— Jehudi ?￰ﾟﾇﾴ (@JCastroS) <a href="https://twitter.com/JCastroS/status/1402311469774131205?ref_src=twsrc%5Etfw">June 8, 2021</a></blockquote>
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&nbsp;

Brazil

Fábio Ostermann updated his profile picture with laser eyes and tagged #LaserEyesTill100k showing his support.

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<a href="https://twitter.com/hashtag/LaserEyes?src=hash&amp;ref_src=twsrc%5Etfw">#LaserEyes</a> <a href="https://twitter.com/hashtag/LaserEyesTill100k?src=hash&amp;ref_src=twsrc%5Etfw">#LaserEyesTill100k</a> <a href="https://twitter.com/hashtag/NovaFotoDoPerfil?src=hash&amp;ref_src=twsrc%5Etfw">#NovaFotoDoPerfil</a> <a href="https://t.co/tbxThxh5Ps">pic.twitter.com/tbxThxh5Ps</a>
— Fábio Ostermann (@FabioOstermann) <a href="https://twitter.com/FabioOstermann/status/1401988499893587968?ref_src=twsrc%5Etfw">June 7, 2021</a></blockquote>
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&nbsp;

Argentina

Francisco Sanchez updated his profile photo of himself with the laser eyes, commenting “I can't believe it, but this is how it is”.

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<a href="https://twitter.com/hashtag/NuevaFotoDePerfil?src=hash&amp;ref_src=twsrc%5Etfw">#NuevaFotoDePerfil</a> <a href="https://t.co/zqftvmKRfB">pic.twitter.com/zqftvmKRfB</a>
— Francisco Sánchez ?￰ﾟﾇﾷ (@fsancheznqn) <a href="https://twitter.com/fsancheznqn/status/1402045792333012997?ref_src=twsrc%5Etfw">June 7, 2021</a></blockquote>
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&nbsp;

Tonga

Tonga is another country positive towards Bitcoin, with Lord member of Parliament Lord Fusitua looking to invest in Bitcoin with the nation's $750m of reserves.

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Tonga ?￰ﾟﾇﾴ may be next nation to adopt <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> 
 
Lord Member of Parliament <a href="https://twitter.com/LordFusitua?ref_src=twsrc%5Etfw">@LordFusitua</a> says he's already chatting with <a href="https://twitter.com/jackmallers?ref_src=twsrc%5Etfw">@jackmallers</a> and is looking to buy <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> with the nation's $750 million of reserves. 
 
Remittances also make up 37% of their GPD. <a href="https://t.co/mk1cxMC4Ul">pic.twitter.com/mk1cxMC4Ul</a>
— Documenting Bitcoin ? (@DocumentingBTC) <a href="https://twitter.com/DocumentingBTC/status/1402655617462980613?ref_src=twsrc%5Etfw">June 9, 2021</a></blockquote>
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Support for crypto-currencies can come in many forms, whether it be by approving a certain project's tokens as legal tender, or by investing a countries reserves into digital assets to hedge against inflation. The industry is full of entrepreneurs and investors who are moving ahead at full speed, and the first countries to show support for these emerging technologies are set to gain tremendously by attracting jobs, talent and investments into their territories. Choosing an outright ban of crypto-currencies can make countries miss out on a huge opportunity for growth and high tech jobs, something that the entire world will need a lot more of after recuperating from the coronavirus pandemic.

On Wednesday, El Salvador's legislature passed a law that designates Bitcoin legal tender. This makes it possible to pay taxes with Bitcoin, and businesses will now be obligated to accept Bitcoin payments, and converting Bitcoin to other currencies will no longer be subjected to capital-gains tax.

On Wednesday, El Salvador's legislature passed a law that designates Bitcoin legal tender. This makes it possible to pay taxes with Bitcoin, and businesses will now be obligated to accept Bitcoin payments, and converting Bitcoin to other currencies will no longer be subjected to capital-gains tax. With this law that will take effect in 90 days, El Salvador becomes the first country in the world to consider Bitcoin a legal currency. The advantage of being first might make El Salvador a tidy gain when investors and entrepreneurs alike flock to the nation, taking advantage of the good climate, lack of property tax, no capital-gains tax for Bitcoin, and immediate permanent residence for crypto entrepreneurs. After El Salvador's legislature has legalised Bitcoin and deemed it a currency, the road ahead looks bright for other developing countries in the region. It is not only the President of El Salvador who is positive towards crypto-currencies, but a lot of other leaders in Central and South American countries too. Paraguay might be the second country to adopt Bitcoin, as the Deputy of the Nation Carlos Antonio Rejala Herman tweeted hints about adoption a few days back: “As I was saying, our country needs to advance hand-in-hand with the new generation. The moment has come, our moment. This week we start with an important project to innovate Paraguay in front of the world.” Note the #BTC & #PayPal in the tweet, could a collaboration be looming? Rejala also mentions 'to the moon' along with a picture of himself with laser eyes, a trend that caught on in the crypto currency community earlier this year. Como ya lo decía hace un buen tiempo, nuestro país necesita avanzar de la mano de la nueva generación. Llegó el momento, nuestro momento. Esta semana empezamos con un proyecto importante para innovar a Paraguay frente al mundo! El verdadero to the moon ?#btc & #paypal pic.twitter.com/ZMRJgAIxgO — Carlitos Rejala ?￰ﾟﾇﾵ?￰ﾟﾙﾌ (@carlitosrejala) June 7, 2021 × A move toward Bitcoin adoption could be very good for the economy of Paraguay, as the electricity is really cheap in the country and they produce more than twice as much electricity than what's used domestically, and they export power to both Argentina and Brazil at good rates. The cheap electricity, and positive legal outlook has led to the construction of one of the world's largest mining centers in the country. The Golden Goose Mining Center has been built on a 200,000m² site near the Laipu hydro-power plant in Paraguay. Stable and cheap hydro-power coming from this mega-sized dam, along with political stability, low taxes, support of foreign-funded enterprises, low risk of armed conflict with neighboring countries and high speed internet has made Paraguay tick all the boxes that mining companies are looking for when setting up operations. Panama Gabriel Silva is pushing for support and tweets, “This is important. And Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies We will be preparing a proposal to present at the Assembly. If you are interested in building it, you can contact me”. Esto es importante. Y Panamá no se puede quedar atrás. Si queremos ser un verdadero hub de tecnología y emprendimiento tenemos que apoyar las criptomonedas Estaremos preparando una propuesta para presentar en la Asamblea. Si están interesados en construirla me pueden contactarte https://t.co/yiAzPpD9nj — Gabriel Silva (@gabrielsilva8_7) June 7, 2021 × Mexico Senator Indira Kempis has also changed her twitter profile picture to one with laser eyes, along with many tweets supporting El Salvador's moves and the industry. https://t.co/h5iJ24TmNw pic.twitter.com/pBKVLDp7E9 — Indira Kempis de I. (@IndiraKempis) June 8, 2021 × Eduardo Murat Hinojosa also sports the laser eyes, will propose a legal framework for cryptos in Mexico's lower house. Voy a promover y proponer ante la Cámara de Diputados un marco legal para las criptomonedas en México #btc I will be promoting and proposing a legal framework for crypto coins in Mexico's lower house #btc pic.twitter.com/zwhYOZ7KAg — Eduardo Murat Hinojosa (@eduardomurat) June 8, 2021 × Colombia Jehudi Castro Sierra, Digital Transformation Adviser, Office of the Presidency of Colombia, contributed to the World Economic Forum's Decentralized Finance Policy-Maker toolkit and is calling for Colombia to embrace the emerging technology. Very pleased to have contributed to the Decentralized Finance: (DeFi) Policy-Maker Toolkit from @wef and @Wharton. DeFi is a great opportunity and Colombia is ready to embrace it. https://t.co/iih2IaPWm3 — Jehudi ?￰ﾟﾇﾴ (@JCastroS) June 8, 2021 × Brazil Fábio Ostermann updated his profile picture with laser eyes and tagged #LaserEyesTill100k showing his support. #LaserEyes #LaserEyesTill100k #NovaFotoDoPerfil pic.twitter.com/tbxThxh5Ps — Fábio Ostermann (@FabioOstermann) June 7, 2021 × Argentina Francisco Sanchez updated his profile photo of himself with the laser eyes, commenting “I can't believe it, but this is how it is”. #NuevaFotoDePerfil pic.twitter.com/zqftvmKRfB — Francisco Sánchez ?￰ﾟﾇﾷ (@fsancheznqn) June 7, 2021 × Tonga Tonga is another country positive towards Bitcoin, with Lord member of Parliament Lord Fusitua looking to invest in Bitcoin with the nation's $750m of reserves. Tonga ?￰ﾟﾇﾴ may be next nation to adopt #Bitcoin Lord Member of Parliament @LordFusitua says he's already chatting with @jackmallers and is looking to buy #bitcoin with the nation's $750 million of reserves. Remittances also make up 37% of their GPD. pic.twitter.com/mk1cxMC4Ul — Documenting Bitcoin ? (@DocumentingBTC) June 9, 2021 × Support for crypto-currencies can come in many forms, whether it be by approving a certain project's tokens as legal tender, or by investing a countries reserves into digital assets to hedge against inflation. The industry is full of entrepreneurs and investors who are moving ahead at full speed, and the first countries to show support for these emerging technologies are set to gain tremendously by attracting jobs, talent and investments into their territories. Choosing an outright ban of crypto-currencies can make countries miss out on a huge opportunity for growth and high tech jobs, something that the entire world will need a lot more of after recuperating from the coronavirus pandemic.

El Salvador legalises Bitcoin as other nations plan similar moves

The Congress of El Salvador has approved a law that will classify Bitcoin as legal tender in the Central American country, its president said, making it the world's first nation to adopt a cryptocurrency.

"The #BitcoinLaw has just been approved by a qualified majority" in the legislative assembly, President Nayib Bukele tweeted after the vote late Tuesday.

"History!" the president added.

He said a majority of 62 out of 84 lawmakers approved the bill, which he proposed last week.

The law passed with the support of Bukele's allies despite minority opposition parties -- who had criticised the speed of the vote -- refusing to back it.

Before the vote, Bukele said adopting the cryptocurrency would bring "financial inclusion, investment, tourism, innovation and economic development" to the country.

The Salvadoran leader has hailed bitcoin as "the fastest-growing way to transfer" billions of dollars in remittances and to prevent millions from being lost to intermediaries.

Remittances from Salvadorans working overseas represent a major chunk of the economy -- equivalent to roughly 22 per cent of Gross Domestic Product.

In 2020, remittances to the country totalled $5.9 billion, according to official reports.

"This is a law that will put El Salvador on the world's radar, we will be more attractive for foreign investment," Romeo Auerbach, deputy of the Grand Alliance for National Unity party, an ally of Bukele, said.

The cryptocurrency market grew to more than $2.5 trillion in mid-May 2020, according to the Coinmarketcap page, driven by interest from increasingly serious investors from Wall Street to Silicon Valley.

But the volatility of bitcoin -- currently priced at $33,814 -- and its murky legal status has raised questions about whether it could ever replace traditional currency in day-to-day transactions.

The Congress of El Salvador has approved a law that will classify Bitcoin as legal tender in the Central American country, its president said, making it the world's first nation to adopt a cryptocurrency.

The Congress of El Salvador has approved a law that will classify Bitcoin as legal tender in the Central American country, its president said, making it the world's first nation to adopt a cryptocurrency. "The #BitcoinLaw has just been approved by a qualified majority" in the legislative assembly, President Nayib Bukele tweeted after the vote late Tuesday. "History!" the president added. He said a majority of 62 out of 84 lawmakers approved the bill, which he proposed last week. The law passed with the support of Bukele's allies despite minority opposition parties -- who had criticised the speed of the vote -- refusing to back it. Before the vote, Bukele said adopting the cryptocurrency would bring "financial inclusion, investment, tourism, innovation and economic development" to the country. The Salvadoran leader has hailed bitcoin as "the fastest-growing way to transfer" billions of dollars in remittances and to prevent millions from being lost to intermediaries. Remittances from Salvadorans working overseas represent a major chunk of the economy -- equivalent to roughly 22 per cent of Gross Domestic Product. In 2020, remittances to the country totalled $5.9 billion, according to official reports. "This is a law that will put El Salvador on the world's radar, we will be more attractive for foreign investment," Romeo Auerbach, deputy of the Grand Alliance for National Unity party, an ally of Bukele, said. The cryptocurrency market grew to more than $2.5 trillion in mid-May 2020, according to the Coinmarketcap page, driven by interest from increasingly serious investors from Wall Street to Silicon Valley. But the volatility of bitcoin -- currently priced at $33,814 -- and its murky legal status has raised questions about whether it could ever replace traditional currency in day-to-day transactions.

El Salvador becomes the first country to adopt bitcoin as legal tender after passing legislation

Hacker group Anonymous has released a video targetting Tesla CEO Elon Musk. In the video released on Youtube on June 4, Anonymous,&nbsp; responsible for some of the major cyber-attacks has criticised Musk's hold on the cryptocurrency market.

Calling Musk a "Narcissistic rich dude" with "Superiority and savior complex', Anonymous alleged that mainstay of Tesla's income doesn't come from selling cars but comes from government subsidies. And money from these subsidies has been used by Musk to buy Bitcoins, alleges Anonymous.

Elon Musk has lately been very vocal about Bitcoins and cryptocurrencies. His tweets on Bitcoin have caused value of the cryptocurrency to drastically increase and decrease.

Disapproving of these practices, Anonymous has held Musk responsible for playing with common man's money that is invested in hope of getting good returns from cryptocurrencies.

"The games you have played with crypto market have destroyed lives," says Anonynous. The hacker group ends their video with an ominous 'expect us'.

Anonymous has been a formidable hacker group, past cyberattacks of which have shut down governments and corporations alike.

Hacker group Anonymous has released a video targetting Tesla CEO Elon Musk. In the video released on Youtube on June 4, Anonymous, responsible for some of the major cyber-attacks has criticised Musk's hold on the cryptocurrency market.

Hacker group Anonymous has released a video targetting Tesla CEO Elon Musk. In the video released on Youtube on June 4, Anonymous, responsible for some of the major cyber-attacks has criticised Musk's hold on the cryptocurrency market. Calling Musk a "Narcissistic rich dude" with "Superiority and savior complex', Anonymous alleged that mainstay of Tesla's income doesn't come from selling cars but comes from government subsidies. And money from these subsidies has been used by Musk to buy Bitcoins, alleges Anonymous. Elon Musk has lately been very vocal about Bitcoins and cryptocurrencies. His tweets on Bitcoin have caused value of the cryptocurrency to drastically increase and decrease. Disapproving of these practices, Anonymous has held Musk responsible for playing with common man's money that is invested in hope of getting good returns from cryptocurrencies. "The games you have played with crypto market have destroyed lives," says Anonynous. The hacker group ends their video with an ominous 'expect us'. Anonymous has been a formidable hacker group, past cyberattacks of which have shut down governments and corporations alike.

'Expect us': Hacktivist group Anonymous targets Elon Musk over his crypto market hold

El Salvador's President Nayib Bukele said on Saturday that he will send a bill to Congress next week to make bitcoin legal tender in the country. 
 
"In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Bukele said in a video shown at the Bitcoin 2021 conference in Miami. 
 
Strike, a mobile payments app that launched in El Salvador in March, said in a statement that it welcomed the legislation and was working with the country to make using bitcoin technology a success. 
 
“This is the shot heard 'round the world for bitcoin," Strike founder and CEO Jack Mallers was quoted as saying at the Miami conference. 
 
"Adopting a natively digital currency as legal tender provides El Salvador the most secure, efficient and globally integrated open payments network in the world," Mallers said. 
 
(With inputs from agencies)

El Salvador's President Nayib Bukele said on Saturday that he will send a bill to Congress next week to make bitcoin legal tender in the country. "In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Bukele said in a video shown at the Bitcoin 2021 conference in Miami.

El Salvador's President Nayib Bukele said on Saturday that he will send a bill to Congress next week to make bitcoin legal tender in the country. "In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Bukele said in a video shown at the Bitcoin 2021 conference in Miami. Strike, a mobile payments app that launched in El Salvador in March, said in a statement that it welcomed the legislation and was working with the country to make using bitcoin technology a success. “This is the shot heard 'round the world for bitcoin," Strike founder and CEO Jack Mallers was quoted as saying at the Miami conference. "Adopting a natively digital currency as legal tender provides El Salvador the most secure, efficient and globally integrated open payments network in the world," Mallers said. (With inputs from agencies)

El Salvador's president says will send bill to make bitcoin legal tender

Bitcoin&nbsp;slipped more than 3 per cent on Friday after Tesla boss Elon&nbsp;Musk&nbsp;fired off a&nbsp;tweet&nbsp;hinting at a breakup with the cryptocurrency, though it remains on course for its best&nbsp;weekly&nbsp;gain&nbsp;in about a month as it tries to recover from May's crash.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-other-cryptocurrencies-tumble-over-biden-tax-plan-fears-379752">Bitcoin, other cryptocurrencies tumble over Biden tax plan fears</a>

Bitcoin&nbsp;was last down about 3.6 per cent at $37,809.&nbsp;Musk&nbsp;tweeted "#Bitcoin" and a heartbreak emoji above a meme appearing to show a couple discussing their breakup.&nbsp;Bitcoin&nbsp;is up 6.3 per cent this week.

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<a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> 💔 <a href="https://t.co/lNnEfMdtJf">pic.twitter.com/lNnEfMdtJf</a>
— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1400620080090730501?ref_src=twsrc%5Etfw">June 4, 2021</a></blockquote>
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Musk&nbsp;has been a major promoter of cryptocurrencies but has turned critical of&nbsp;bitcoin&nbsp;since suspending Tesla plans to take it in payment for cars owing to concerns about its energy use.

Bitcoin slipped more than 3 per cent on Friday after Tesla boss Elon Musk fired off a tweet hinting at a breakup with the cryptocurrency, though it remains on course for its best weekly gain in about a month as it tries to recover from May's crash.

Bitcoin slipped more than 3 per cent on Friday after Tesla boss Elon Musk fired off a tweet hinting at a breakup with the cryptocurrency, though it remains on course for its best weekly gain in about a month as it tries to recover from May's crash. Also Read | Bitcoin, other cryptocurrencies tumble over Biden tax plan fears Bitcoin was last down about 3.6 per cent at $37,809. Musk tweeted "#Bitcoin" and a heartbreak emoji above a meme appearing to show a couple discussing their breakup. Bitcoin is up 6.3 per cent this week. #Bitcoin 💔 pic.twitter.com/lNnEfMdtJf — Elon Musk (@elonmusk) June 4, 2021 × Musk has been a major promoter of cryptocurrencies but has turned critical of bitcoin since suspending Tesla plans to take it in payment for cars owing to concerns about its energy use.

Musk tweet dents bitcoin, but weekly gain in prospect

An uncanny bust recently happened in England. A sign of the times, British police set out to find a cannabis farm but instead found a Bitcoin mining centre.

Computer systems&nbsp;were found by the police, who claim that users were illegally siphoning electricity to mine Bitcoin. 100 computer units were seized by police officers in West Midlands, England. According to the police, the computers were attempting to bypass the local power grid.

The warehouse was discovered using a drone after the device detected a heat source and followed its trail.

Bitcoin mining is a lengthy and energy-consuming process. Miners usually get extremely high power bills. The process requires computers to solve complicated mathematics problems to create new coins. In a Citigroup report, it was revealed that mining bitcoin now takes 66 times more electricity than the same process needed in 2015.

According to the Centre for Alternative Finance at the University of Cambridge, mining bitcoin uses more power ever year than all of the Netherlands.

Also read:&nbsp;<a href="http://13.235.153.162/world/here-is-why-elon-musk-decried-bitcoins-insane-energy-use-after-tesla-payment-u-turn-384954" hreflang="en">Here is why Elon Musk decried bitcoin's 'insane' energy use after Tesla payment U-turn</a>

“It’s certainly not what we were expecting. It had all the hallmarks of a cannabis cultivation set-up” Police Sergeant Jennifer Griffin said in a statement on Friday.&nbsp;

The police added that mining bitcoin is not illegal, but siphoning&nbsp;electricity for the same is illegal. No arrests have been so far, but police believe that electricity worth thousands of dollars was illegally taken off the grid.

This is the second such illegal mining operation to be uncovered in the region by police forces.

Also read:&nbsp;<a href="http://13.235.153.162/world/bitcoin-can-be-chinese-financial-weapon-against-us-warns-cryptocurrency-investor-peter-thiel-376034" hreflang="en">Bitcoin can be 'Chinese financial weapon' against US, warns cryptocurrency investor Peter Thiel</a>

An uncanny bust recently happened in England. A sign of the times, British police set out to find a cannabis farm but instead found a Bitcoin mining centre. Computer systems were found by the police, who claim that users were illegally siphoning electricity to mine Bitcoin.

An uncanny bust recently happened in England. A sign of the times, British police set out to find a cannabis farm but instead found a Bitcoin mining centre. Computer systems were found by the police, who claim that users were illegally siphoning electricity to mine Bitcoin. 100 computer units were seized by police officers in West Midlands, England. According to the police, the computers were attempting to bypass the local power grid. The warehouse was discovered using a drone after the device detected a heat source and followed its trail. Bitcoin mining is a lengthy and energy-consuming process. Miners usually get extremely high power bills. The process requires computers to solve complicated mathematics problems to create new coins. In a Citigroup report, it was revealed that mining bitcoin now takes 66 times more electricity than the same process needed in 2015. According to the Centre for Alternative Finance at the University of Cambridge, mining bitcoin uses more power ever year than all of the Netherlands. Also read: Here is why Elon Musk decried bitcoin's 'insane' energy use after Tesla payment U-turn “It’s certainly not what we were expecting. It had all the hallmarks of a cannabis cultivation set-up” Police Sergeant Jennifer Griffin said in a statement on Friday. The police added that mining bitcoin is not illegal, but siphoning electricity for the same is illegal. No arrests have been so far, but police believe that electricity worth thousands of dollars was illegally taken off the grid. This is the second such illegal mining operation to be uncovered in the region by police forces. Also read: Bitcoin can be 'Chinese financial weapon' against US, warns cryptocurrency investor Peter Thiel

UK police accidentally discover Bitcoin mine while searching for cannabis warehouse

The cryptocurrency market is experiencing a tough time following last week's free fall. Strong volatility pushed many investors to insolvency. Crypto investors have incurred a huge loss of $ 830 billion in the last one week.

World Business Watch: Volatility in cryptocurrency market

Bitcoin dipped 11.33% to $33,250 at 16:00 GMT on Sunday, losing $4,248.98 from its previous close.

Bitcoin, the world's biggest and best-known cryptocurrency, is down 48% from the year's high of $64,895.22 on April 14.

Ether, the coin linked to the ethereum blockchain network, dropped 16.59 % to $1,915.34 on Sunday, losing $380.97 from its previous close.

Bitcoin markets operate 24/7, setting the stage for price swings at unpredictable hours.

"Many point to Bitcoin’s volatility as untenable," wrote RBC Capital Markets' Amy Wu Silverman in a research note published on Saturday. "Indeed, Bitcoin makes severe and dizzying swings."

Bitcoin had been under pressure after a series of tweets last week by billionaire Tesla Chief Executive and cryptocurrency backer Elon Musk, chiefly his reversal on Tesla accepting bitcoin as payment.

In addition, on Friday China cracked down on mining and trading of the largest cryptocurrency as part of ongoing efforts to prevent speculative and financial risks.

China's Financial Stability and Development Committee, chaired by Vice Premier Liu He, singled out bitcoin as the asset it needs to regulate more.

The statement, which came days after three Chinese industry bodies tightened a ban on banks and payment companies providing crypto-related services, was a sharp escalation of the country's push to stamp out speculation and fraud in virtual currencies.

China's latest campaign against crypto came after the U.S. Treasury Department on Thursday called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service, and the Federal Reserve flagged the risks cryptocurrencies posed to financial stability.

Bitcoin dipped 11.33% to $33,250 at 16:00 GMT on Sunday, losing $4,248.98 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is down 48% from the year's high of $64,895.

Bitcoin dipped 11.33% to $33,250 at 16:00 GMT on Sunday, losing $4,248.98 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is down 48% from the year's high of $64,895.22 on April 14. Ether, the coin linked to the ethereum blockchain network, dropped 16.59 % to $1,915.34 on Sunday, losing $380.97 from its previous close. Bitcoin markets operate 24/7, setting the stage for price swings at unpredictable hours. "Many point to Bitcoin’s volatility as untenable," wrote RBC Capital Markets' Amy Wu Silverman in a research note published on Saturday. "Indeed, Bitcoin makes severe and dizzying swings." Bitcoin had been under pressure after a series of tweets last week by billionaire Tesla Chief Executive and cryptocurrency backer Elon Musk, chiefly his reversal on Tesla accepting bitcoin as payment. In addition, on Friday China cracked down on mining and trading of the largest cryptocurrency as part of ongoing efforts to prevent speculative and financial risks. China's Financial Stability and Development Committee, chaired by Vice Premier Liu He, singled out bitcoin as the asset it needs to regulate more. The statement, which came days after three Chinese industry bodies tightened a ban on banks and payment companies providing crypto-related services, was a sharp escalation of the country's push to stamp out speculation and fraud in virtual currencies. China's latest campaign against crypto came after the U.S. Treasury Department on Thursday called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service, and the Federal Reserve flagged the risks cryptocurrencies posed to financial stability.

Bitcoin falls 11.3 per cent to USD 33,250, ether down 16.6 per cent

Cryptocurrencies may have had a turbulent week, but leading&nbsp;chess&nbsp;players,&nbsp;including world number one Magnus Carlsen, will play for $100,000 of Bitcoin over the coming days.

Together with a $220,000 cash pot, the FTX Crypto Cup, which begins on Sunday, has the biggest prize for an online&nbsp;chess&nbsp;competition in history.

Carlsen is the top name involved, but will joined by 15 of the world's leading players, including former world title challenger Fabiano Caruana, and the man who will take on the Norwegian next, Ian Nepomniachtchi.

Bitcoin was trading at nearly $60,000 at the start of May, plunged to below $35,000 this week but had recovered slightly on Friday to around $40,000.

Hong Kong-based Sam Bankman-Fried, Chief Executive of cryptocurrency exchange FTX, admitted that the short-term outlook for the cryptocurrency was uncertain, but that longer term it would become more established among mainstream financial institutions.

"I will say that there are certainly reasons to be optimistic, and one thing that I'll say is we've had conversations with a lot of major banks and other financial players over the last year, and one really, really consistent theme has been all of them saying 'well six months ago, we had a mandate basically never to touch crypto, and now we have a mandate that we have to figure out how to do something in crypto over the next two months'.''

''And you know, I don't think they know what, or exactly what, you know how it's going to happen yet, and so there's still a lot of room left to grow that."

Meanwhile, Dutch number one Anish Giri, who will be part of the line up at the FTX Crypto Cup, said interest in cryptocurrency among&nbsp;chess&nbsp;professionals was high, and welcomed the move to offer Bitcoin as prize money even if he couldn't be sure what it would be worth by the end of the tournament.

"It's like playing with the house money right?" he said. "You're getting it for pretty much for nothing, it's also a bonus added to the prize fund."

Cryptocurrencies may have had a turbulent week, but leading chess players, including world number one Magnus Carlsen, will play for $100,000 of Bitcoin over the coming days.

Cryptocurrencies may have had a turbulent week, but leading chess players, including world number one Magnus Carlsen, will play for $100,000 of Bitcoin over the coming days. Together with a $220,000 cash pot, the FTX Crypto Cup, which begins on Sunday, has the biggest prize for an online chess competition in history. Carlsen is the top name involved, but will joined by 15 of the world's leading players, including former world title challenger Fabiano Caruana, and the man who will take on the Norwegian next, Ian Nepomniachtchi. Bitcoin was trading at nearly $60,000 at the start of May, plunged to below $35,000 this week but had recovered slightly on Friday to around $40,000. Hong Kong-based Sam Bankman-Fried, Chief Executive of cryptocurrency exchange FTX, admitted that the short-term outlook for the cryptocurrency was uncertain, but that longer term it would become more established among mainstream financial institutions. "I will say that there are certainly reasons to be optimistic, and one thing that I'll say is we've had conversations with a lot of major banks and other financial players over the last year, and one really, really consistent theme has been all of them saying 'well six months ago, we had a mandate basically never to touch crypto, and now we have a mandate that we have to figure out how to do something in crypto over the next two months'.'' ''And you know, I don't think they know what, or exactly what, you know how it's going to happen yet, and so there's still a lot of room left to grow that." Meanwhile, Dutch number one Anish Giri, who will be part of the line up at the FTX Crypto Cup, said interest in cryptocurrency among chess professionals was high, and welcomed the move to offer Bitcoin as prize money even if he couldn't be sure what it would be worth by the end of the tournament. "It's like playing with the house money right?" he said. "You're getting it for pretty much for nothing, it's also a bonus added to the prize fund."

Checkmate for Bitcoin? Chess tournament offers $100,000 crypto currency prize

Bitcoin's value plunged on Wednesday after China signaled a new crackdown on the cryptocurrency, but its losses were cushioned after Tesla head Elon Musk spoke up on Twitter.

The virtual currency fell to almost $30,000 — less than half the record value it reached last month — before climbing back over $39,500 around 2000 GMT. It was still above its level at the start of the year.

Bitcoin recovered somewhat following tweets from Musk that featured a diamond and hands emoji, taken as a signal the company had not sold off its huge bitcoin holdings as the CEO appeared to suggest recently.

Also read |&nbsp;<a href="https://www.wionews.com/technology/elon-musks-tesla-halts-bitcoin-purchases-amid-concerns-of-increasing-carbon-emissions-384647" hreflang="en">Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions</a>

At its daily low on Wednesday, the unit lost nearly a third of its value compared to the start of the week and more than half compared to its record, reached just a month ago, on April 14, at $64,869.78.

Making matters worse, Chinese authorities on Wednesday said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them, despite the country powering most of the world's mining.

Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering, as leaders try to stop people from shifting cash overseas. The country had been home to around 90 percent of the global trade in the sector.

Also read |&nbsp;<a href="https://www.wionews.com/world/musk-pokes-fun-at-himself-admits-twitter-puts-him-in-trouble-383862" hreflang="en">Musk pokes fun at himself, admits Twitter puts him in trouble&nbsp;</a>

In a statement, three state-backed industry associations said "cryptocurrency prices have skyrocketed and plummeted, and cryptocurrency trading speculation activities have rebounded."

The price fluctuations "seriously violate people's asset safety and disrupt normal economic and financial order," said the statement posted to social media by the People's Bank of China.

The notice warned consumers against wild speculation, adding that the "losses caused by investment transactions are borne by the consumers themselves," since Chinese law offers no protection to them.&nbsp;

It reiterated that providing cryptocurrency services to customers and crypto-based financial products was illegal for Chinese financial institutions and payment providers.

"This is the latest chapter of China tightening the noose around crypto," said Antoni Trenchev, managing partner and co-founder of London-based crypto lender Nexo.

Linghao Bao, analyst at Trivium China, said that despite the ban, Chinese investors could still find ways to buy cryptocurrencies through illegal vendors.

"There will always be a way to circumvent regulations," he said. "The point of this order is to tell financial institutions to up their game to detect these crypto-related transactions."

Bitcoin had a roller-coaster day on Wednesday, falling from $45,600 to under $40,000, then climbing back before dropping to $30,017 and up again.

"This looks like your typical flash crash, but there seems to be some hesitancy in getting back in," said Edward Moya, senior market analyst at OANDA.

'Here to stay'

Adam Reynolds, of Saxo Markets, added that avoiding use of cryptocurrency, which can be transferred out of the country, is "essential to maintaining capital controls" in China.&nbsp;

Bitcoin has had a torrid few days, in good part because of Musk and Tesla.

Last week Tesla hit the brakes on letting people pay for its electric cars with bitcoin, citing concerns about the harmful effects that mining cryptocurrencies has on the environment.

Then Musk appeared to suggest Tesla was planning to sell its huge holdings of the unit, before clarifying that the company had not sold any bitcoin.

"Elon Musk started the ball rolling," Germany-based crypto analyst Timo Emden told AFP. "It will take some time for them to recover from this shock."

Mining cryptocurrency is a hugely energy-intensive process requiring large amounts of electricity in giant data centers.

China, which powers nearly 80 percent of the global cryptocurrency trade, relies on a particularly polluting type of coal, lignite, to power some of its mining.

"If bitcoin was a country, it would use around the same amount of electricity a year to mine as Switzerland does in total," Deutsche Bank analysts said in a note.

Some Chinese enthusiasts, however, remained unfazed.

"This has happened before and it happens every year...," said trader and ex-tech industry worker Zeng Jiajun. "Crypto is here to stay." &nbsp;

China is in the midst of a wide-ranging regulatory crackdown on its fintech sector. Its biggest players — including Alibaba and Tencent — have been hit with big fines after being found guilty of monopolistic practices.

Bitcoin's value plunged on Wednesday after China signaled a new crackdown on the cryptocurrency, but its losses were cushioned after Tesla head Elon Musk spoke up on Twitter.

Bitcoin's value plunged on Wednesday after China signaled a new crackdown on the cryptocurrency, but its losses were cushioned after Tesla head Elon Musk spoke up on Twitter. The virtual currency fell to almost $30,000 — less than half the record value it reached last month — before climbing back over $39,500 around 2000 GMT. It was still above its level at the start of the year. Bitcoin recovered somewhat following tweets from Musk that featured a diamond and hands emoji, taken as a signal the company had not sold off its huge bitcoin holdings as the CEO appeared to suggest recently. Also read | Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions At its daily low on Wednesday, the unit lost nearly a third of its value compared to the start of the week and more than half compared to its record, reached just a month ago, on April 14, at $64,869.78. Making matters worse, Chinese authorities on Wednesday said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them, despite the country powering most of the world's mining. Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering, as leaders try to stop people from shifting cash overseas. The country had been home to around 90 percent of the global trade in the sector. Also read | Musk pokes fun at himself, admits Twitter puts him in trouble In a statement, three state-backed industry associations said "cryptocurrency prices have skyrocketed and plummeted, and cryptocurrency trading speculation activities have rebounded." The price fluctuations "seriously violate people's asset safety and disrupt normal economic and financial order," said the statement posted to social media by the People's Bank of China. The notice warned consumers against wild speculation, adding that the "losses caused by investment transactions are borne by the consumers themselves," since Chinese law offers no protection to them. It reiterated that providing cryptocurrency services to customers and crypto-based financial products was illegal for Chinese financial institutions and payment providers. "This is the latest chapter of China tightening the noose around crypto," said Antoni Trenchev, managing partner and co-founder of London-based crypto lender Nexo. Linghao Bao, analyst at Trivium China, said that despite the ban, Chinese investors could still find ways to buy cryptocurrencies through illegal vendors. "There will always be a way to circumvent regulations," he said. "The point of this order is to tell financial institutions to up their game to detect these crypto-related transactions." Bitcoin had a roller-coaster day on Wednesday, falling from $45,600 to under $40,000, then climbing back before dropping to $30,017 and up again. "This looks like your typical flash crash, but there seems to be some hesitancy in getting back in," said Edward Moya, senior market analyst at OANDA. 'Here to stay' Adam Reynolds, of Saxo Markets, added that avoiding use of cryptocurrency, which can be transferred out of the country, is "essential to maintaining capital controls" in China. Bitcoin has had a torrid few days, in good part because of Musk and Tesla. Last week Tesla hit the brakes on letting people pay for its electric cars with bitcoin, citing concerns about the harmful effects that mining cryptocurrencies has on the environment. Then Musk appeared to suggest Tesla was planning to sell its huge holdings of the unit, before clarifying that the company had not sold any bitcoin. "Elon Musk started the ball rolling," Germany-based crypto analyst Timo Emden told AFP. "It will take some time for them to recover from this shock." Mining cryptocurrency is a hugely energy-intensive process requiring large amounts of electricity in giant data centers. China, which powers nearly 80 percent of the global cryptocurrency trade, relies on a particularly polluting type of coal, lignite, to power some of its mining. "If bitcoin was a country, it would use around the same amount of electricity a year to mine as Switzerland does in total," Deutsche Bank analysts said in a note. Some Chinese enthusiasts, however, remained unfazed. "This has happened before and it happens every year...," said trader and ex-tech industry worker Zeng Jiajun. "Crypto is here to stay." China is in the midst of a wide-ranging regulatory crackdown on its fintech sector. Its biggest players — including Alibaba and Tencent — have been hit with big fines after being found guilty of monopolistic practices.

Bitcoin tumble slows with help from Elon Musk

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