Hong Kong-based Bitcoin vending machine distributor Bitcoinnect - formerly known as Coinnect - installed its first ‘Bitcoin vending kiosk’ in a Sands Macao casino over the weekend but is now moving the machine elsewhere, Business Daily has learned.
The Bitcoin vending kiosk, which may not promote itself as ‘ATM’ or ‘Bitcoin ATM’ as required by the Monetary Authority of Macau, was installed in a pawnshop on the ground floor of Sands Macao casino over the weekend. But by noontime yesterday, the Bitcoin vending kiosk was already set to be relocated elsewhere, Business Daily learned from a site check.
“We’re moving the kiosk because it has to be placed in a spot with a more stable wi-fi reception,” chief executive officer of Bitcoinnect Mr. Jase Leung Wing Hei told Business Daily on the phone yesterday, but he declined to reveal whether the kiosk would be relocated within the Sands Macao casino property or elsewhere.
With the Bitcoin vending kiosks – commonly referred to as Bitcoin ATM machines - users can actually sell Bitcoins or other altcoins by activating their personal e-wallet installed in their smartphone applications, and obtain fiat money in front of the machine. The Bitcoinnect machines enable users to top up their Bitcoin balance by using cash or vice versa, the company explained.
“We’re not installing the Bitcoin machines adjacent to gaming floors, but we did consider installing them at nearby pawn shops or jewellery [stores] inside casinos,” Leung said. “Sands [Macao casino] is a nice place to start out. Although we will not be targeting Bitcoin kiosks to be installed in only casinos but in other shopping places as well – basically spots that can help us to popularise the use of Bitcoin transactions.”
The Bitcoinnect kiosk installed in Sands Macao casino, manufactured by U.S.-based Genesis Coin Inc., can accept 2,200 bank notes and dispenses 6,800 bank notes in a go; but this particular kiosk, which has been dealing in Macau patacas, will be configured to deal in Hong Kong dollars, Mr. Leung said.
“For the time being, we’ll have these Bitcoin kiosks installed here to deal in Hong Kong dollars first, but they could be further configured to accept transactions in other currencies when required by the site owner,” Leung said.
He added that the Bitcoin exchange kiosk can be operated with the use of popular Bitcoin e-wallets including the Mycelium Bitcoin Wallet, Coin Pocket and Blockchain.
The Bitcoinnect CEO noted that the company would like to install four Bitcoin vending kiosks in Macau from now to early July.
In a late April press conference, when the Hong Kong-based Bitcoin vending machine distributor operated under the name of Coinnect, the company had already declared its intention to launch 20 bitcoin vending machines in Hong Kong and Macau.
As of yesterday, the Coinnect official website and the company were still operational - but Mr Leung said that the Coinnect trademark and operation would soon dissolve while Bitcoinnect will take over all the bitcoin vending machine business following a company restructuring process.
Traceable records
Bitcoin vending kiosks to be placed here are installed with ‘know your customer’ functions, including fingerprint scanner, identification card reader and high-definition camera, Mr. Jase Leung said.
“Every transactions that takes place in the vending kiosk is on our record, so if any suspicious transactions are observed, we can trace them or deliver the related information whenever required by the police of Macau or Hong Kong,” Mr Leung said.
In a press release issued last week, the Monetary Authority noted that Bitcoin is only a type of virtual commodity rather than legal tender or a financial instrument subject to supervision, accompanying a cautionary note to the public that trading Bitcoins involves ‘considerable risks,’ including but not limited to those relating to money laundering and the financing of terrorism.
There have been speculative reports from Chinese-language Hong Kong media recently that suggested Bitcoin transactions enabled by the vending kiosks here could become a new conduit to aid outbound mainland Chinese visitors evade the rule of taking only 20,000 yuan across the border per trip. Mr. Leung disagreed with this suggestion.
“A Bitcoin transaction can never replace a UnionPay terminal swipe – it involves the users having to establish their own Bitcoin account, and a user identification process,” Leung remarked.
With Aries Un
June 23, 2014 at 09:30PM
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