Crypto ATM Provides RMB Exchange Faces Extreme Risk of Crackdown in China

Of late, a video of Bitcoin ATM withdrawal operation is spreading on the Internet. The video guarantees that users can get the cryptocurrency-cash exchange and real-time RMB withdraw service from this machine.

According to Internet Finance News, it is actually a blockchain-based self-service teller machine (BTM) that provide the exchange service between cryptocurrency and fiat money.

In early November, BTM was launched by Blockchain (Shenzhen) Research and Development Center in a technology conference held in Shenzhen. They demonstrated the withdraw operation at the conference: in order to withdraw 500 RMB, the user has to pay 0.0096393 BTC (BTC price at that time is around US$7,558). The BTM would also provide transaction receipt with information to users including TXID, trading address, trading amount and trading time.

As of press time, the current Bitcoin price is US$ 3,658, has dropped nearly 50% compared to the price during that conference.

The Blockchain (Shenzhen) Research and Development Center claimed that they have conducted massive R&D in various blockchain-based technologies, including the underlying technology of blockchain, blockchain digital asset self-service teller machine and blockchain mining chips, etc.

However, China’s financial authorities have cracked down all the domestic cryptocurrency trading activities and ICOs in last September. Moreover, the regulation sector has also banned the Cryptocurrency – RMB trading activities this August.

All these above shows the BTM cannot meet the current regulatory requirements, it would face a significant risk of being banned as it is illegal to engage in any exchange activities of fiat money and any virtual currency in China.

On March 9, Zhou Xiaochuan, the former governor of PBoC (People’s Bank of China) said that the central bank does not recognize any virtual currency, such as bitcoin, as a retail payment instrument.

“We do not recognize virtual currency as a retail payment instrument, and the banking system does not accept (or provide) any crypto-related services.”

According to Coin ATM Radar, there are 42 Bitcoin ATM located in China, of which 32 are in Hong Kong and 8 in Taiwan. While both of the two Bitcoin ATMs in mainland China are “out of use” at present due to the regulatory issue.

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