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Police crack down on illegal Bitcoin ATM in Hong Kong

illegal bitcoin ATM

Hong Kong security operatives have arrested three men for illegal Bitcoin ATM activities. According to the statement released by the media outlet, South China Morning Post, the criminals carried out the crime on six different ATMs. 

After the illegal Bitcoin ATM activities were done, the men got away with nothing less than $30,000 in a total of 11 transactions. The superintendent of the region, Wilson Tam Wai-shun, gave full details into the loopholes exploited by the criminals. 

In his review, he said that this was the first time they were going to record such in that region. According to the Chief of Police, the arrested men are the key figures behind the notorious group.

Majority of the fintech startups use crypto-related technologies

Going by the records published in Hong Kong by the Financial Services and Treasury Bureau, 40% of Fintech startup companies in the region is said to be using cryptographic technology

Furthermore, 39% of the companies have been exploring the distributed ledger market since 2019. The total number of the company using crypto-related technology is at an increasing pace. 

In 2018 alone, companies that dealt in crypto services reached 27% in 2018. Going by this figure, the region recorded a 12% increase in 2019. With the recent case of illegal Bitcoin ATM activities in Hong Kong, firms now need to start beefing up the security on their ATMs.

Hong Kong police advise on how to reduce illegal Bitcoin ATM activities

Presently, the total number of Bitcoin ATMs across Hong Kong is estimated to be around 56, with the total number worldwide estimated to be about 9,000. Majority of the Bitcoin ATMs around Hong Kong was said to have been produced by renowned outfit, Coinhere. 

After Coinhere, HK Bitcoin ATM comes close in second place. With the Hong Kong law recognizing digital assets as a commodity, a new constitution was enacted last year to check the activities of crypto-related companies

Presently, there is still no confirmed news on how the criminals carried out the illegal Bitcoin ATM activities. Law enforcement has given clear advice on how to stop future occurrences.

Kamsi King

Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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