There were rumors in the community that Tesla added Bitcoin and Dogecoin to its payment page source code.
In another news, The prohibitions are aimed at coming into compliance with the Financial Action Task Force’s (FATF) global recommendations for crypto assets, and followed a study into the sector by the the National Committee for Combating Money Laundering and Financing of Terrorism, according to the regulator.
Back in February 2021, Tesla made headlines when it announced that it would begin accepting Bitcoin as a form of payment for its electric vehicles. This move was accompanied by the company’s significant investment of $1.5 billion in Bitcoin, further fueling the surging cryptocurrency market. However, just three months later, the company surprisingly reversed its decision, citing environmental concerns related to the energy-intensive process of mining Bitcoin.
Although countries are required to put up guardrails for preventing money laundering, and adhere to the FATF’s travel rule – which requires crypto firms to collect and share data on transactions above a certain threshold – the international watchdog has not asked countries to ban crypto, it told CoinDesk in May.
The state of Kuwait is the latest jurisdiction to ban virtually all operations involving cryptocurrencies like Bitcoin
BTC
On July 18, Kuwait’s main financial regulator, the Capital Markets Authority (CMA), issued a circular on the supervision and issuance of virtual assets in the country.
In the circular, the CMA confirmed the commitment to “absolute prohibition” on major use cases and operations involving cryptocurrencies, including payments, investments, and mining.
The circular also bans local regulators from issuing any licenses allowing firms to provide virtual asset services as a commercial business.
Tesla’s pivot away from Bitcoin sparked debates within the crypto community and raised questions about the environmental impact of digital currencies that rely on proof-of-work mechanisms. Elon Musk, known for his active presence on social media platforms, has been both a vocal proponent and critic of cryptocurrencies. His tweets about Bitcoin and other digital assets often have a substantial impact on their prices, leading some to coin the term “Elon effect” to describe his influence on the crypto market.
Despite Tesla’s initial enthusiasm for Bitcoin, the company’s recent actions have demonstrated a cautious approach to its involvement with cryptocurrencies. In July 2021, Elon Musk stated that his company would “most likely” resume accepting Bitcoin as a payment option once the mining process for the cryptocurrency transitions to 50% renewables. This commitment came as a sign of Tesla’s willingness to embrace digital currencies again if sustainable energy practices are adopted in the crypto mining industry.
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