Advertisement

New anti-money-laundering regulations should exclude Hong Kong’s bitcoin ATMs to sustain innovation, says industry body

  • The government’s proposal to regulate cryptocurrency exchanges could leave ATMs as one of the last remaining avenues for retail investing
  • Stricter oversight of bitcoin has created uncertainties for start-ups and their blockchain-related investments, says Leo Weese, co-founder of the Bitcoin Association of Hong Kong

Reading Time:3 minutes
Why you can trust SCMP
7
The price of bitcoin soars to historic highs, hitting US$24,000 on Wednesday after tripling this year. Photo: Getty Images

As Hong Kong’s financial regulators tighten their scrutiny of cryptocurrencies, the machines that dispense bitcoin and other digital tokens may soon be among the last remaining avenues for individual retail traders.

Advertisement

A broader set of rules currently being considered would subject the city’s virtual currency exchange platforms to licensing requirements by the Securities and Futures Commission, and forbid them from servicing retail investors.

But the bitcoin automatic teller machines (ATMs) could also eventually find themselves off limits if an appeal from the cryptocurrency community for the government to exclude them from the extended regulations designed to tackle money laundering goes unheeded.

There are roughly 60 bitcoin automatic teller machines (ATMs) across the city where users can buy and sell bitcoin and other digital currencies. Located in shopping malls and commercial buildings, they provide a convenient way for members of the public to trade bitcoin, or transfer cryptocurrencies to other users.

The price of bitcoin has soared to historic highs, hitting US$24,000 on Wednesday after tripling this year.

In a November consultation, the Financial Services and Treasury Bureau proposed widening the scope of the city’s anti-money-laundering and counterterrorist financing ordinance to include cryptocurrency exchanges.
Advertisement