Bitcoin Depot Launches in Hong Kong as City Rises as Global Crypto Hub

Introduction

Bitcoin Depot (Nasdaq: BTM), the largest Bitcoin ATM operator in North America, is expanding into Hong Kong as part of its Asia growth strategy, targeting markets with strong demand for easy cash-to-crypto access. The company aims to rank among the top five Bitcoin ATM operators in Hong Kong, underscoring the city’s momentum as a global crypto hub. According to Coin ATM Radar, Hong Kong currently hosts 223 Bitcoin ATMs, highlighting a solid base of retail crypto infrastructure and demand for convenient Bitcoin purchases and sales via kiosks. (Cointelegraph)

Regulatory compliance is central to Bitcoin Depot’s rollout. Operating Bitcoin ATMs in Hong Kong requires a Money Service Operator (MSO) license from the Customs and Excise Department, along with robust AML and KYC controls. Bitcoin Depot said its compliance team is working with local partners to meet all applicable requirements. The move aligns with Hong Kong’s broader digital asset push, where policy clarity is helping differentiate it from mainland China—illustrated by initiatives like Franklin Templeton’s tokenized USD money market fund for professional investors. 

The expansion comes amid rapid global growth—and scrutiny—of crypto kiosks. Since Jan 2021, the number of Bitcoin ATMs has surged 177% to roughly 39,469 worldwide, with the U.S. leading at over 30,000 machines and Australia jumping from 21 to more than 2,000. However, authorities have flagged fraud risks: the FBI recorded nearly 11,000 complaints tied to crypto kiosks totaling over $246 million in 2024, prompting some U.S. cities and states to restrict or ban machines and Australia to consider giving AUSTRAC powers to curb them.

Background

Bitcoin Depot (Nasdaq: BTM), North America’s largest Bitcoin ATM operator, is expanding into Hong Kong—its first major push into Asia. The move underscores rising global demand for convenient “cash-to-crypto” services and highlights Hong Kong’s emergence as a regulated hub for digital assets. Bitcoin Depot says it aims to become one of the top five Bitcoin ATM operators in the city, where more than 200 crypto kiosks are already in operation. (Bitcoin Depot press release, Coin ATM Radar)

Key takeaways at a glance

• Bitcoin Depot is launching in Hong Kong as part of its Asia expansion, targeting growing cash-to-crypto demand.

• Operating crypto kiosks in Hong Kong requires a Money Service Operator (MSO) license and robust AML/KYC controls.

• Hong Kong is positioning itself as a regional digital asset hub with clearer rules and institutional pilots like tokenized funds.

• Global Bitcoin ATM growth remains strong but faces increasing scrutiny due to fraud risks and evolving regulations.

What is a Bitcoin ATM and who uses it?

A Bitcoin ATM (often called a “BTM” or crypto kiosk) is a physical machine that lets people buy or sell Bitcoin (and sometimes other cryptocurrencies) using cash or debit cards. Unlike online exchanges, BTMs are often used by:

• Cash-preferring or underbanked users who want direct access to Bitcoin.

• People seeking fast, simple, in-person transactions without setting up exchange accounts.

• Users who value convenience and immediate settlement, sometimes at higher fees than online platforms.

Global adoption has risen rapidly. Since January 2021, the number of crypto ATMs has grown by roughly 177% to nearly 40,000 worldwide, with the United States hosting the majority of machines and Australia emerging as a fast-growing market. (Coin ATM Radar (growth))

Why Hong Kong—and why now?

Hong Kong is cultivating a reputation as a digital asset hub with clear regulations, institutional pilots, and structured licensing. For Bitcoin Depot, the market offers the right mix of demand, policy clarity, and infrastructure.

• Policy clarity: Bitcoin ATM operators must comply with Hong Kong’s Money Service Operator regime, administered by the Customs and Excise Department. This includes licensing, anti-money-laundering (AML), and Know Your Customer (KYC) obligations to legally facilitate cash-to-crypto transactions. (MSO overview, Licensing guide (PDF))

• Existing footprint: Hong Kong already counts more than 200 active Bitcoin ATMs, signaling a baseline of retail demand and operator expertise in the city.

• Institutional momentum: The city has welcomed experiments in tokenization and regulated crypto offerings. In November, Franklin Templeton launched a tokenized U.S. dollar money market fund for professional investors in Hong Kong—one of the first fully on-chain funds integrating issuance, distribution, and servicing. 

Compliance essentials: MSO license, AML, and KYC explained

• Money Service Operator (MSO) license: Required for businesses that conduct money-changing or remittance services, including cash-to-crypto operations. It ensures operators meet fitness, properness, and control standards.

• AML/KYC: Anti-Money Laundering (AML) and Know Your Customer (KYC) controls verify user identities and monitor transactions to deter illicit activity. These are standard requirements in regulated crypto markets and particularly central for physical kiosks handling cash.

• What users can expect: Identity checks, transaction limits, and enhanced due diligence for higher-risk scenarios are normal in compliant environments. This can feel stricter than unregulated kiosks, but it provides legal certainty and consumer protection.

Global context: rising adoption, evolving oversight

While consumer demand for Bitcoin ATMs is expanding, regulators are paying closer attention to fraud and consumer protection.

• U.S. trends: The FBI’s Internet Crime Complaint Center (IC3) reported nearly 11,000 fraud complaints tied to crypto kiosks totaling over $246 million in 2024, prompting some cities and states to restrict or even ban machines. (FBI IC3 2024 Report)

• Australia: From just 21 machines in 2021 to over 2,000 today, Australia is now a top-three Bitcoin ATM market after the U.S. and Canada. Policymakers have floated giving AUSTRAC expanded authority to limit or ban kiosks if needed.

These developments reflect a broader trend: authorities want to preserve access and innovation while tightening controls around scams and money laundering. Operators entering regulated markets like Hong Kong typically design their compliance programs to meet or exceed local standards.

What this means for consumers and the market

• Simpler on-ramps: For residents and visitors who prefer using cash or debit, Bitcoin ATMs can offer a straightforward way to obtain Bitcoin—particularly for first-time buyers or those without exchange accounts.

• More choice, potential competition: As more operators enter Hong Kong, users may benefit from better locations, improved user experience, and potentially more competitive pricing and limits.

• Clearer protections: MSO licensing and AML/KYC requirements can make the experience more consistent and safer than in lightly regulated markets, though users should still practice basic security hygiene.

Practical tips: using Bitcoin ATMs safely and smartly

• Verify the operator: Check if the machine is run by a known, licensed provider. For Hong Kong, search the MSO register and review on-site disclosures.

• Understand costs: Bitcoin ATMs often carry higher fees than online exchanges. Review quoted rates, network fees, and any fixed charges before confirming.

• Use your own wallet: Whenever possible, send purchases to a wallet you control (non-custodial). If using a custodial wallet, enable strong security settings.

• Be scam-aware: No legitimate authority will demand payment via Bitcoin ATM. If someone is rushing you to deposit cash into a kiosk, it’s likely a scam.

• Keep records: Save receipts and transaction IDs for support inquiries or compliance checks.

Bottom line

Bitcoin Depot’s entry into Hong Kong is a notable signal of Asia’s growing appetite for regulated, convenient cash-to-crypto access. With a defined MSO licensing regime, strong AML/KYC expectations, and active experiments in tokenization, Hong Kong is positioning itself as a pragmatic digital asset hub. For consumers, the expansion should mean more choice and convenience—paired with clearer rules designed to boost trust and reduce risk.