Billionaire Elon Musk believes that the United States government shouldn't regulate the cryptocurrency market and let it 'fly'. Speaking at the Code Conference in Beverly Hills, California, the Tesla and SpaceX chief said that governments can only slow down the advancements of cryptocurrencies with regulations.

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When asked if the US government should be involved in the crypto market, Musk said, “I would say, do nothing... I would actually say, just let it fly.” He added, “It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement.”

Musk, who has been an outspoken digital money supporter, said that he doesn't think of himself as a “massive cryptocurrency expert” but maintained that the cryptocurrency has some potential to reduce “error and latency” in the conventional money systems. However, he was quick to add that cryptocurrency is certainly not the “second coming of the Messiah”.

The statement comes in the wake of governments all across the world trying to come up with laws to regulate cryptocurrencies.

Recently, China's central bank had declared all cryptocurrency transactions illegal, effectively banning all digital coins. Consequently, the value of cryptocurrencies dropped significantly. The state-run bank also banned mining of cryptocurrencies to prevent “illegal financial activities”. The crackdown order specified that any foreign website providing digital coin mining services to Chinese citizens will be ultra vires.

Responding to a question on China's crackdown on digital currencies, Musk said that the cryptocurrency is fundamentally aimed at reducing the power of a centralised government and they don’t like that. He, however, added that the crackdown may be aimed at reducing power consumption as “a lot of South China is having random power outages”.

Earlier on September 27, US Securities and Exchange Commission chair Gary Gensler said that the cryptocurrency market, which has around $2 trillion in total market capitalisation, is not going to end well “if it stays outside of the regulatory space”.