A small sign near the cashier of the takeaway specialty coffee kiosk states: “We accept Bitcoin” and offers 10% off for payments with the digital currency.

The staff, when asked about using Bitcoin for a purchase, seem initially caught off guard. One of them said very few customers choose to pay with the digital coin. But when a young man turns up showing the Lightning Network app on his phone – the Bitcoin payment method used by Chart Coffee – he is able to make a trouble-free purchase. Chart Coffee didn’t reply to emailed questions.

Easy to obtain

Unlike on the mainland, obtaining Bitcoin and other major digital coins is not difficult in China’s Special Administrative Region. The metropolis of nearly 8mn is estimated to have more than 200 crypto ATMs, according to Coin ATM Radar, most of which are situated in hotels, retail stores and laundromats. That compares with a total 3,100 ATMs according to data for 2024 published by the International Monetary Fund (IMF)’s Financial Access Survey. 

Cash-to-crypto can also be conducted in Over-The-Counter (OTC) storefronts that allow walk-in customers to do regular foreign exchange transactions as well as purchase virtual currencies such as Bitcoin and Ether. 

In contrast, Singapore has banned crypto ATMs, on concern of harm to consumers. South Korea, Japan and Australia also permit the machines, although the AUSTRAC financial crime regulator has repeatedly warned of the threat from "one of the highest risk money laundering channels." Those warnings echo the US, where a number of cities are removing the machines after instances of fraud and scams.

 In 2024, the FBI's Internet Crime Complaint Center counted nearly 11,000 complaints about cryptocurrency ATMs, totaling $246.7mn in losses. For the first seven months of 2025, the losses were nearly equal to the whole of the prior year at about $240mn, FBI figures show. 

 The alarm bells haven’t rung in Hong Kong, where police do not break out fraud complaints related to OTC or crypto ATMs as separate categories, though authorities regularly warn the public to be on guard about financial scams that include crypto schemes.

Virtual assets hub

Hong Kong’s authorities have been gearing up to be a trusted leading hub for virtual assets in the last few years, granting licences to cryptocurrency exchanges, conducting sandbox pilots for Real World Asset tokenization of bonds and getting ready to greenlight stablecoins in 2026.

 The OTCs in particular are popular with tourists and tend to be clustered in districts such as Tsim Tsa Tsui, which boasts a bustling shopping row along Nathan Road and another retail haven, Mongkok, in Kowloon. Shopping plazas near main transport hubs in the New Territories bordering mainland China are other popular places for people in Hong Kong to buy or sell crypto.

 COINHERO claims it maintains the region’s largest crypto ATM network, and in October said that it had more than 90 ATMs across high-traffic districts including Causeway Bay, Kowloon, and the New Territories in Hong Kong. It states that its differentiator is publishing all its fees clearly and providing bilingual 24/7 support, including in English and Traditional Chinese.

 A recent visit to its main ATM and OTC booth in Causeway Bay on a weekday afternoon found little activity except for a few curious glances at its flashing neon sign with a rotation of messages including: “Fast Secure Reliable Anonymous” and declaring “Crypto is your superpower. Be brave to trade.”

 Asked about a demonstration of how to use the ATM, a COINHERO employee in an OTC booth adjacent to the ATM advised to follow the instructions on posters by the machine. COINHERO didn’t reply to emailed questions.

 A sign by the ATM machine shows QR codes and invites users to download Tether, Bitcoin, Ether and Bitcoin Cash Wallet. The fee for BTC (Bitcoin), ETH (Ether) or DOGE (Dogecoin) is a 8.6% spread plus a HK$100 (about $13) flat fee, and for BCH it charges a 1% spread only with no flat fee. 

Customer ID

Another sign about Know Your Customer (KYC) states that COINHERO accepts customer identification, showing images of the Hong Kong ID card, Hong Kong passport, British National Overseas Passport (issued to former British Dependent Territories citizens from Hong Kong who registered before the 1997 handover), British passport and China passport as examples.

It is difficult to estimate how much of the crypto purchases are made by residents of mainland China, which since September 2021 has outlawed crypto trading and in late 2025 issued strongly worded reminders that these assets are not legal tender and off limits. Beijing has instead promoted the e-CNY, a digital version of its yuan, which operates under strict capital controls.

 Anecdotally, Chinese visitors to Hong Kong are among the active buyers of crypto in the territory, especially as day-tripping has become easier from neighboring cities like Shenzhen and Guangzhou in southern China, which connect through high-speed trains, MTR commuter rail, cross-boundary coaches and buses, as well as ferries.

 “Some people from the mainland believe Bitcoin is digital gold, that it’s already valuable and will go up even more,” said Tom McDonald, associate professor of digital anthropology at the University of Hong Kong. He noted that many visitors from mainland China carrying out such transactions tended to favour OTC shops in commercial centers rather than ATMs.

KYC checks

He said that conducting the crypto transactions in the SAR was a form of regulatory arbitrage, and that unlike investing in crypto exchange traded products on licensed institutions in Hong Kong, generally avoid KYC checks even though some ATMs have ID card features and cameras.

 While the volume of transactions by mainland Chinese visitors isn’t easy to verify, McDonald speculated that “people who make this journey (to Hong Kong) are bringing small amounts of cash” to exchange. 

 In Hong Kong, ATM operators must obtain a Money Service Operator licence and are regulated by the Securities & Futures Commission and the Hong Kong Monetary Authority. Withdrawals exceeding HK$8000 ($1028) trigger a customer due diligence rule. 

 For Syed Musheer Ahmed, an advisor and ecosystem builder in the fintech and virtual assets industry, Hong Kong has been ahead of the pack on digital assets, attracting pioneers in crypto as early as 2014 when “many of the top 10 Bitcoin holders” primarily from Greater China and Hong Kong attended an event hosted in the city.

 Ahmed, whose Hong Kong-based FinStep Asia supports companies in navigating regulatory frameworks and the licensing process for digital assets, is an expert on regulations and licensing in the Middle East and Asia. As ATMs mushroom in the city with global leader Bitcoin Depot recently entering the fray, Ahmed is skeptical that the machines draw much activity.

 “I think ATMs are more ‘show and tell’, to increase curiosity (about crypto),” he said. Ahmed is a co-lead of a blueprint on Web3 in Hong Kong issued by Web3 Harbour, an umbrella group set up to promote Hong Kong’s development of the digital asset economy. 

That isn’t a deterrent for Atlanta-based Bitcoin Depot, whose Hong Kong debut plants a flag for its business in Asia Pacific. The largest Bitcoin ATM operator in the US with more than 9,000 kiosk locations, it claims a 30% market share there. Its entry into Hong Kong already makes it one of the top five operators in the region, it said in a press release. 

Spreading adoption

“Hong Kong is quickly becoming a global center for crypto, with the right mix of regulation, demand, and momentum,” said Scott Buchanan, President & COO of Bitcoin Depot, which states that its mission is to bring Bitcoin to the masses.

 That may take a while in Hong Kong. Paris-born globe trotter Gaëlle Wizenberg, who in August took over as the new director of BAHK, the Bitcoin Association of Hong Kong, is used to a more active Bitcoin lifestyle. When she lived in El Salvador for 1.5 years in a small circular economy, she used Bitcoin digital currency to pay for nearly everything except for rent. Her main mission at the helm of the BAHK, which was founded in 2014 from casual meet-ups, is to provide education about the benefits of Bitcoin. BAHK is one of the oldest Bitcoin organizations in the world that is still active, she noted, adding that Bitcoin education is necessary and is happening worldwide.

 “Hong Kong is one of the financial capitals of the world, and the government seems more open to let it become the crypto capital of the world,” she said. The Bitcoin association meets weekly, alternating between Kowloon and Hong Kong island, and attracts enthusiasts from different careers, nationalities and ages. The youngest is 19 with the oldest member in his 70s. 

 There’s merch as well. Wizenberg is launching new Bitcoin emblazoned baby swim and reusable nappies (diapers) in a collaboration with homegrown Hong Kong brand Charlie Banana. She also offers hardware products and Bitcoin consulting to businesses via the Whale Lounge HK.

 She said the BAHK plans to work with Hong Kong government departments to help educate lawyers, accountants and auditors to simplify crypto reporting. This is a critical step for wider acceptance by retailers of crypto payments and to attract visitors who want to spend Bitcoin in the city.

Laundromat venues

Crypto ATMs are especially plentiful in Kowloon, the energetic mainland half of Hong Kong separated from Hong Kong island’s Central district’s skyscrapers by Victoria Harbour.  Wizenberg has spotted them in hotel lobbies as well as laundromats.

Observers say that the double-digit percentage fees at some kiosks may be a deterrent to users. But that apparently hasn’t stopped some business owners from installing an ATM, perhaps to convey an aura of being cool or leading edge. 

At a small laundromat in the Sai Ying Pun district in the western part of Hong Kong island, a skinny bright yellow Localcoin ATM has sprung up, inviting users to “buy cryptocurrency in simple 4 steps”. It promises a 30% discount on fees with a promotional code.

The economics of operating these ATMs is unclear, but the field seems competitive even though Hong Kong already seems to have an ample number compared with active users. Newcomer Bitcoin Depot said it doesn’t disclose specific costs for installing and operating the machines, adding: “our rollout model is consistent across markets and includes hardware, software, compliance, and operational support,” in an emailed reply to questions.

COINHERO says it offers among the lowest-cost ATM transactions in Hong Kong, and that it runs a franchise programme for businesses willing to host a kiosk, providing help with rental expenses and touting the benefits of “increased foot traffic and an extra revenue stream”. 

“As Hong Kong embraces its role as a hub for digital assets, companies that prioritize compliance, transparency, and accessibility will play a central role in adoption,” COINHERO said in its October news release.

Bitcoin Depot was sanguine about the ATM competition in Hong Kong, noting that Coin ATM Radar estimates there are 230 Bitcoin ATMs in the city, signalling that “interest in crypto is strong and where people will look for simple, cash-to-crypto options”. The company has installed two ATMs in the Jordan neighbourhood of Kowloon.

“We see competition as a sign that the market is healthy. The presence of other operators confirms that people in Hong Kong actively use cash-to-crypto services,” the company said. “We’re focused on expanding access to Bitcoin in Hong Kong by offering a simple, reliable way for people to buy it, whether they’re seasoned users or simply curious about crypto and want an easy on-ramp. 

Bullish global outlook

Globally, the outlook for crypto ATMs is bullish, according to some reports. ResearchAndMarkets.com projects that the global crypto ATM market is projected to soar from $191mn in 2025 to $1.2bn in 2030, with a 45% compound annual growth rate. In 2024, North America led the pack with a 40% market share, followed by Europe with 30%, supported by crypto-friendly regulations in countries like Switzerland. Asia-Pacific’s ATM growth was at a 25% CAGR (compound annual growth rate), fueled by rising disposable incomes and crypto adoption in India and Southeast Asia, the report said.