Thursday, February 27, 2014

Bitcoin ATM Opens in Singapore Amid Probe Into Tokyo"s Mt. Gox

Tembusu Terminals Pte set up what

may be Singapore’s first automated tele-exchange machine for

buying Bitcoins days after a Tokyo exchange for the virtual

currency was shut amid concerns about possible theft.


The ATM was installed at The Spiffy Dapper, a bar in the

Boat Quay district, according to a statement from Tembusu, which

is based in the city-state. The company is talking with other

retailers that accept the virtual currency to set up its ATMs on

their premises, it said, without naming them.


The announcement comes six days after Singapore’s finance

minister said the central bank didn’t recognize Bitcoin as legal

tender and had cautioned individuals about the use of virtual

currencies. Bitcoins have come under scrutiny in markets from

China to Russia and the U.S., with some regulators seeking to

ban or limit the use of the currency.


“I am sure all of us would agree that it has been an

exciting, and some would even say trying, past few weeks for

Bitcoin users worldwide,” Andras Kristof, 44, Tembusu’s chief

technical officer, said in today’s statement. “Through this

entire roller-coaster ride, I can’t help but think back to the

main guiding principle” of flexibility that the Tembusu

terminal provides, he said.


Mt. Gox, once the world’s largest exchange for digital-currency transactions, went offline in Tokyo on Feb. 25 after

halting customers’ Bitcoin withdrawals on Feb. 7. A document

posted on the Internet said Mt. Gox had lost 744,408 Bitcoins,

worth about $420 million at current rates, as a result of theft

that “went unnoticed for several years.”


The Singapore terminal could also possibly offer cash

dispensing, features such as identity and thumb-print scanning,

and anti-money laundering capabilities as required by local

regulators, according to the statement.


‘Be Cautious’


There are no Bitcoin ATMs in the city, “as far as” the

Association of Banks in Singapore was aware, John Lim, an

external spokesman for the organization, wrote in an e-mail.


The Monetary Authority of Singapore does not regulate

Bitcoins and has “been advising individuals and businesses to

think twice and be cautious about accepting or dealing in

virtual currencies,” Finance Minister Tharman Shanmugaratnam,

who is also chairman of MAS, said in Parliament on Feb. 21.


Tembusu’s ATM will be joined tomorrow by ANX, a Hong Kong-based platform for trading virtual currencies, which will open

the first retail store in that city that allows individuals to

buy and sell Bitcoins in Hong Kong dollars.


Introduced in 2008 by a programmer or group of programmers

under the name Satoshi Nakamoto, Bitcoin is based on a peer-to-peer software protocol, has no central issuing authority, and

uses a public ledger to verify transactions while preserving

users’ anonymity.


Bitcoin fell 1.9 percent to $566 as of 3:38 p.m. Singapore

time, according to the CoinDesk Bitcoin Price Index, which

averages exchange prices. The value climbed as high as $1,151 on

Dec. 4, luring investors and customers even as regulators and

lawmakers raised concern the currency could be used for money-laundering and fraud.


To contact the reporter on this story:

Sanat Vallikappen in Singapore at

vallikappen@bloomberg.net


To contact the editor responsible for this story:

Chitra Somayaji at

csomayaji@bloomberg.net



Bitcoin ATM Opens in Singapore Amid Probe Into Tokyo"s Mt. Gox

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