[Bitcoin Now] Rebound Below 50 Million KRW... Musk Urges "US Government, Stop Cryptocurrency Regulation"

China's Largest E-commerce Company Alibaba "Stops Selling Cryptocurrency Mining Equipment"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin briefly fell below 50 million won before slightly rebounding. Elon Musk, CEO of Tesla, made remarks urging the U.S. government to stop regulating cryptocurrencies, which appears to have somewhat calmed the market.

According to the domestic cryptocurrency exchange Upbit, as of 2:16 PM on the 29th, Bitcoin recorded 51.16 million won, up 1.71% from the previous day. Earlier that morning at 9:17 AM, it dropped to 49.92 million won, causing some investors to express anxiety. This is the first time Bitcoin has recorded a price in the 40 million won range since August 9.

It is still interpreted that China's regulations are affecting the cryptocurrency market. According to U.S. economic media Business Insider on the 28th (local time), China's largest e-commerce company Alibaba announced it will block the sale of cryptocurrency mining equipment starting October 8. Alibaba added that this is a measure in response to recent regulations by Chinese financial authorities.

China has long been the leading country in cryptocurrency regulation. According to U.S. economic media CNBC on the 24th, the People's Bank of China, the central bank, announced it would classify activities related to cryptocurrencies, including transactions, as illegal. Consequently, global exchanges such as Binance and Huobi Global have begun withdrawing from the Chinese cryptocurrency market.

Meanwhile, as CEO Musk made statements supporting cryptocurrencies, the market also seems to stabilize somewhat. According to CNBC on the 28th, at a conference held in California, he said, “I want to tell the U.S. government to do nothing regarding cryptocurrencies,” adding, “The government may slow down the development speed of cryptocurrencies but cannot destroy them.”

The U.S. government is also attempting to regulate the cryptocurrency market. According to the Wall Street Journal (WSJ) on the 14th, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), indicated a strengthening of regulations, stating, “There is no proper regulation for cryptocurrency exchanges.” The SEC still has not approved the launch of exchange-traded funds (ETFs) based on Bitcoin due to its volatility and anonymity.