How some grey-market crypto ATMs in Hong Kong can turn users into fraud victims
Inside a tiny self-service laundromat in Quarry Bay in the east of Hong Kong Island, next to a wall of washing machines, stands a waist-high cryptocurrency terminal with signs reading “Elon Musk recommends Dogecoin” and “Buy bitcoin in one minute”. In order to obtain Dogecoin through the ATM, customers feed Hong Kong dollar notes into a slot and scan a QR code. The equivalent amount in…
A cryptocurrency ATM operating in a laundromat in Quarry Bay, Hong Kong, allows users to exchange Hong Kong dollars for Dogecoin. These ATMs, which have proliferated across the city, have faced criticism from lawmakers and industry insiders for their potential links to scams, weak consumer protection, and money laundering. The Securities and Futures Commission (SFC) has identified approximately 200 virtual asset retailers in Hong Kong, including crypto ATMs.
While some operators claim to implement consumer protection controls, others, like Localcoin, acknowledge the risks of money laundering and scams. The city is in the process of establishing a regulatory framework for these ATMs, with a bill expected to be introduced later this year. Operators and legal experts suggest that existing statutes, such as criminal laws, would still apply to ATM operators, but a dedicated license would impose stricter consumer protection and compliance requirements.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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