The world is going towards enhanced digitalization day by day. Where cryptocurrencies are going to dominate the financial market. Physical money already has become less used in the market. Over this digital money, now cryptos started to raise their existence in the global market. Crypto exchange companies are brokers between the users and the bank to withdraw money. But as Japan has already been more advanced in all technological sectors, this country brings back its first crypto ATM or in crypto terms, BTM. It took four years to break to return to the Japanese market. Bitcoin ATMs debuted in Tokyo in early 2014. Due to a massive hack, that ceased at that time.
How Does It Work?
The local crypto firm, Gaia Co. has brought back the BTMs with an advanced security system. The BTMs are open to Bitcoin(BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). These cryptos exchanges can be withdrawn through the BTMs. It is reported that multiple BTms will be installed all over the country. For the initial stage, the BTMs will be started with Tokyo and Osaka. The plan is to install over 50 BTMs across the country within the next 12 months. Within the next 3 years, it is expected to start at least 130 BTMs over the country.
For the initial stage, some security protocols are to be followed during the withdrawal process. It Is set to withdraw a maximum of $747 or in Japanese yen it would be 100,000 yen per withdrawal. Per day the BTMs will allow users to withdraw $2,243 or 300,000 Japanese yen. This limitation is implemented to secure the transaction. This is considered an anti-money laundering guideline.
The authority company Gaia is a locally registered company that installed the BTMs. Which is a user-friendly initiative. To use or get access to the BTM withdrawal, the users first should be registered to the company. Then the company will provide a special card giving the withdrawal access. This card is an approval to use the BTMs. After getting approved, users have to transfer their assets to the BTMs via smartphone and then they can withdraw in Japanese yen. There will be no bank or broker company to receive the amount. That is a direct withdrawal between BTMs and the users.
Traditional Withdrawal vs BTMs :
For a traditional process to withdraw assets in money, users have to connect with the local exchange company. Then the Company will connect with the local bank. After document verifications and many more official formalities, the company sends the amount to the bank. Then the user can get the withdrawal. But in this BTM-withdrawal, it doesn’t take that much time. Within a couple of minutes, users can get their desired amount. While the process between the exchange company and the bank takes too much time.
Recently, the prime minister of the country, Fumio Kishida has focused on the matter. The govt. took the concern regarding time-consuming withdrawal in crypto in a very serious way. The govt. decided to speed up the process through multiple innovations and installation.
Why Was It Ceased?
Before this BTM installation, in early 2014, Japan already started the crypto BTMs. But after the installation, multiple severe hacks took place in the BTMs. Local exchange company Coincheck got hacked at that time. Over $530 million was hacked through the scam. Additionally, the company the Mt. The Gox Crypto exchange also got scammed over $500 million. These incidents caused BTM services to cease. But now, with a renewal activity, BTM installation gets back to the country.