Bitcoin ATM Debuts In China In Spite Of Government Crackdown
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
BTC China, one of the country’s leading bitcoin exchanges, has installed China’s first bitcoin ATM in Shanghai, defying recent government efforts to prohibit widespread usage of the digital currency, reported Reuters on Wednesday.
The machine, located in a cafe at a mall in Shanghai’s Zhangjiang technology park area, allows people to buy bitcoin directly from the exchange for yuan inserted into the machine.
BTC China, one of the country’s leading bitcoin exchanges, has installed China’s first bitcoin ATM in Shanghai, defying recent government efforts to prohibit widespread usage of the digital currency, reported Reuters on Wednesday.
The machine, located in a cafe at a mall in Shanghai’s Zhangjiang technology park area, allows people to buy bitcoin directly from the exchange for yuan inserted into the machine.
Simultaneously, BTC China also announced the launch of an online app that would allow individuals to buy and sell bitcoins using their mobile phones. The app, known as Picasso ATM, will allow users to become “walking bitcoin ATMs,” said the company.
Last December, the People’s Bank of China (PBOC) issued a ban to financial institutions from handling transactions in Bitcoins. Earlier this month, several Chinese bitcoin exchanges also reported that they had received notice of closures for their bank accounts.
Related: Chinese Banks To Shut Down Accounts Of Bitcoin Exchanges
Related: China Bans Bitcoins At Banks
But BTC China’s chief executive Bobby Lee told Reuters that his exchange was still in operation and had yet to receive any notice from his bank.
“News reports said it would be shut down by April 15. It’s April 16 and nothing has happened,” he said.
Nevertheless, Lee believes that his new ATM can skirt the current regulation as it does not involve the banking system at all. Users can only purchase bitcoin, but are unable to withdraw cash.
The machine was lightly used during a visit by Reuters, with just one client appearing to use it, but cafe manager Cheng Mengyao said she had seen a steady stream of customers use the machine for small transactions since it was installed.
Rising interest from mainland Chinese speculators was credited for driving up global bitcoin prices last year to above $1,000 on some exchanges. But the concerns over a government crackdown in China also pushed prices below $400 this month.
Lee sought to alleviate the fears. “The bitcoin market is alive and well in China,” Lee said in an email to MarketWatch.
“Despite all the recent rumours about potential further government crackdown on Bitcoin, the crackdown does not seemed to have happened.”
