HKCEX1

After bagging $2 million in seed funding from local investors, Hong Kong Crypto Exchange (HKCEx) has announced to open a network of 10 Bitcoin ATMs in 10 largest shopping and financial centers in Hong Kong. Each machine will allow users to buy and sell online any of five basic crypto-currencies, including Bitcoin, Litecoin, Namecoin, Novacoin, Peercoin, and to make a withdrawal with HKD or USD.

The ATMs will have a direct connection to the HKCEx, so that one could track online all the current exchange rates. It will also allow users to either login to their HKCEx wallets or to make buying and selling for cash on a no-name basis.

A registered user will also be able to top up its HKCEx account with cash, to deal in with no barriers and to withdraw some free funds and either get cash or change them to digital currency. Each ATM will be equipped with all the up-to-date technologies such as QR-scanner, two-factor user identification and chip-based keys.

HKCEx Chairman & CEO Pheng Cheah noted that “Bitcoin and other crypto-currency traders will get a chance to make deals on the exchange itself with no middlemen involved that usually cost a 20% service fee. HKCEx has set up a project to place at least 20 additional Bitcoin ATMs in Hong Kong during 2014.

HKCEx has been carried on cooperation with several Chinese banks. However, there was no sign of the ATM to be installed in Mainland.

The sprawling growth of Bitcoin market slowed down after relevant Chinese authorities cautioned financial institutions and payment services against the risks of crypto currencies, making clear that Bitcoin is a virtual good rather than legal tender. Following the warning, AliPay and TenPay, two leading domestic third-party payment services, terminated payment and clearing services for crypto-currencies.

Moreover, Mt. Gox, Tokyo-based once leading Bitcoin trading platform, suspended trading on Feb 25, and rumors swirled that the company is going to declare bankruptcy.

Note: The post was based on press release from HKCEx, but Cryptocoinsnews.com doubt it’s scam and is doing investigation on it.

image credit: HKCEx

Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.