Can a Crypto ATM Go Into Service in China?
Can a cryptocurrency ATM functions normaly in mainlan China as an easy avenue to trade bitcoin in mainland China amid amid Beijing’s escalated crackdown on crypto tradings?
A Shenzhen-based blockchain startup showed how a Bitcoin ATM works at the China Hi-Tech Forum 2018 which was held in Shenzhen in November. The physical machine which is developed by the firm allows users to buy and sell cryptos with fiat money using an appropriate crypto wallet on their smartphone. In this way, users can purchase cryptocurrency without a bank account, debit card or credit card and meanwhile, skirt local banking regulations. The machine supports bitcoin and litecoin transactions.
Soon, the video about the brand-new crypto ATM goes viral on China’s social media and offers Chinese slime hope for conveniently trading cryptocurrencies in the country.
But the machine manufacturer, Blockchain(Shenzhen) Research and Development Center, stated on December 28 that the crypto ATM does not support RMB transactions, but it is allowed to exhibit in the country due to the relevant regulations and rules. In fact, the company continues its expansion abroad, and gets orders from many overseas clients.
Despite the market downturn in digital asset values, the number of crypto ATMs doubled in 2018 from 2,025 ATMs in 2017 to 4,051 ATMs, signaling an increase in the adoption of cryptocurrencies in general, according to a tweet from cryptocurrency analytics firm DataLight. Further, the U.S. remains the dominant country with 70 new installations, Peru, Albania and South Korea had their first bitcoin ATMs installed in November, the data from Coin ATM Radar revealed.
The first bitcoin ATM in mainland China, which was installed four years ago in Shanghai, has ceased to provide exchange services to bitcoin investors in April in response to Chinese authorities’ requirements to suspend crypto trading.
As China’s regulators step up efforts to clamp down on all crypto-related activities,no crypto ATM will appear in the country. However, Chinese investors still have access to the crypto market, thanks to the popularity of many offshore operators.