One of Asia’s leading economies – Japan – will once again have cryptocurrency automated teller machines (ATMs). Despite being a financial hub, the country removed all such tools in 2018 after a local exchange was hacked.
There has been a rapid increase in the number of cryptocurrency ATMs around the world over the past few years. Currently, the undisputed leader is the United States with about 34,000 machines.
Japan Takes a Step Towards the Crypto Universe
The Japanese authorities have not always been against crypto ATMs. Before the 2018 bear market, there were a lot of such machines in the country. However, a major hack against digital asset platform Coincheck changed its stance. In early 2018, wrongdoers breached its security and liquidated nearly $500 million worth of its NEM tokens, leading lawmakers to shut down all cryptocurrency ATMs.
According to a press release, this trend will no longer continue as local exchange Gaia will set up ATMs in Tokyo and Osaka. Initially, the machines will support the four largest digital assets by market capitalization: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
The company plans to install 50 crypto ATMs in the next 12 months, while their number should increase to 130 in the next three years.
The machines will enable Japanese consumers to withdraw a maximum of 100,000 yen ($747) per transaction, while the maximum cap for 24 hours will be 300,000 yen ($2,240). This is part of the anti-money laundering guidance that Gaia intends to follow.
The president of Gaia – Motohiro Ogura – highlighted the move, saying it is the first time a domestic exchange is setting up cryptocurrency ATMs in the country.
“There is a sense of security that BTM can be converted into cash instantly. Virtual currency not only attracts attention for investment, but it also has potential as a settlement currency. I want to expand,” he concluded.
Who leads the pack?
When speaking about the number of cryptocurrency ATMs, it is worth pointing out the United States, which ranks as the global leader. The country has about 34,000 machines, or about ten devices per 100,000 citizens. Canada ranks second with around 2,500 crypto ATMs.
Interestingly, due to its small area, China’s Special Administrative Region – Hong Kong – has the highest density of automated teller machines. Residents can find one every 7 kilometres, while Switzerland is second with an ATM every 260 kilometres.
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