ISLAMABAD – Many of the top cryptocurrencies including Bitcoin, Ethereum,and Dogecoin plunged in price after regulators in China announced acrackdown on cryptocurrency payments.

The price crash took Bitcoin below $40,000 for the first time since Januaryand was accompanied by other leading cryptocurrencies including Ethereum,Cardano, and dogecoin which all saw heavy losses.

Following Tesla’s announcement to not accept Bitcoin as a payment method,the news of the Chinese crackdown further panicked the dealers.

As per the latest updates, all financial dealers including banks will notbe allowed to deal in any cryptocurrency services, including tradinghowever the new regulations do not prevent individuals from holding thesecryptocurrencies.

Trading in cryptocurrencies has been restricted in China to prevent moneylaundering, as leaders try to stop people from shifting cash overseas. Thecountry is said to be home to around 90 percent of the global trade in thecrypto sector.

Reports suggest that the crypto market lost close to $1 trillion in lessthan 24 hours before recovering late at night.

On Wednesday, Bitcoin recovered a bit following tweets from Tesla ownerElon Musk that featured a diamond and hands emoji, taken as a signal thatthe company had not sold off its bitcoin holdings.