Cryptocurrency prices rose on Monday after Tesla (TSLA) – Get report Chief Executive Elon Musk said the electric vehicle maker would re-allow transactions once the digital currency is more cleanly mined.
Bitcoin, the world’s largest cryptocurrency, rose 9.1% to $ 39,277, according to Coingecko.
Ethereum rose slightly to $ 2,487 and Dogecoin marginally advanced to 32 cents.
Prices started to rise after Musk said in a tweet that he wants miners to use about 50% clean energy. Musk criticized the digital currency for consuming energy and relying too much on fossil fuels.
The tweet was a response to another post that suggested Musk’s recent back-and-forth positions on Bitcoin were “market manipulation,” and that his comments should have sparked an investigation by the Securities and Exchange Commission.
Musk’s tweet also reiterated his defense of having sold 10% of the electric vehicle maker’s stash of Bitcoin in the first quarter.
Meanwhile, the Justice Department said last week that it had seized most of a ransom payment conducted by Colonial Pipelines last month, after a ransomware attack forced the shutdown of the largest pipelines supplying power to the East Coast.
The department said it recovered 63.5 of the 75 ransom bitcoins paid by the company, valued at about $ 4.4 million at the time it was paid.
David Lesperance, Managing Partner at Lesperance & Associates, said that with “Bitcoin and other cryptocurrencies exploding in value and public awareness, it was not surprising that the [Internal Revenue Service] launched Operation Hidden Treasure, “the agency’s effort to root out tax evasion among cryptocurrency users.
“Those with undisclosed cryptocurrency holdings later split into two camps,” Lesperance said.
“The first group were those who recognized that they needed to get their tax house in order BEFORE the IRS (or other tax authorities) knocked on the door.”
The second camp, he added, “clung to the misguided mythology that cryptocurrencies were the perfect tax haven and they had nothing to worry about.”
“That deception vanished like the morning mist when the US government revealed that they had tracked and seized the cryptography involved in a recent ransomware attack,” he said.
Last month, the State Council’s Financial Stability and Development Committee said China would crack down on bitcoin mining and trading activities as part of efforts to defend itself against financial risks.
China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions and has warned investors against speculative cryptocurrency trading.
Winston Ma, Adjunct Professor at New York University School of Law and author of “Digital Warfare: How China’s Tech Power Shapes the Future of Artificial Intelligence, Blockchain, and Cyberspace,” said: “The Chinese market controls 70% of the global hashrate of bitcoins and crypto assets, so its increasing regulation simply cannot be ignored by the crypto markets.”
“It seems that China focused more on the computing power of its national network of data centers,” he said.
“[And] While China’s mining regulation has already had the impact, the market is still waiting for another shoe related to cryptocurrency trading to drop, as China has also taken steps to restrict cryptocurrency-related capital flows into its financial system. “.