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What Buying Bitcoin in Hong Kong Stores Reveals About the Future of Crypto
Hello from Hong Kong, where I will be speaking with some of Asia’s top leaders finance And crypto leaders at the Fortune Innovation Forum. I have long been curious about this famous city because of its history as a crossroads of global trade and the geographic and cultural ties it has with another Pacific city: my hometown, Vancouver. Luckily, I had some time to explore before the conference started, which allowed me to hike one of Hong Kong’s spectacular peaks, eat dim sum, and of course, to discover the local crypto scene.
I have long heard about stores and stalls in Asia where it is possible to enter and purchase a variety of cryptocurrencies. This is very different from the United States where, at best, you might find a Bitcoin ATM in a random coffee shop. I had read that Hong Kong is in a curious situation when it comes to crypto: the city is cracking down on crypto sellers, while adopting pro-crypto regulations to compete with Singapore and the UAE as a hub . for the emerging industry.
This was reflected in my own experience when I decided to buy cryptocurrencies in Hong Kong. I discovered that stores that existed not too long ago with names like “Satoshi Bitcoins” were marked as permanently closed, but there were still a handful left. I headed to a mall displaying “HK Crypto” still open for business, and found the store and another nearby called “Digi-Castle.” I chose HK Crypto, which displayed a wide range of cryptocurrency logos, and entered.
For the record, I don’t actively trade crypto to avoid conflicts of interest, but I do own half of a Bitcoin that I purchased years ago as well as small amounts of other crypto- coins I use to try out various new blockchain services. At the Hong Kong store, I stood in line behind Cantonese-speaking customers I hovered over who were making transactions involving Ethereum-linked Algorand and the stablecoin USDC. When it was my turn, I walked up to the window and saw a buzzing ATM machine along with large printed QR codes for those who wanted to sell cryptocurrencies for cash.
I asked to buy 200 HKD (around $25) to buy Bitcoin, but was told the minimum transaction was 500 HKD. I decided to sell some instead and called up a QR code attached to a wallet on my phone, but was then informed that I would have to show my passport or other ID that I had left at the hotel. I explained the situation, but was politely told that they could not complete the transaction due to KYC (know your customer) laws. So much for the fact that crypto is completely illegal!
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The situation illustrates well how far crypto has evolved since the early days, when most people bought it through sketchy offshore exchanges or, in some cases, since strangers on the street. My experience at the HK Crypto store was more like using an airport currency exchange – with an added layer of regulation – than an outlaw business. This shows that even as the US government tries to drive crypto from its shores, other regions are creating regulatory regimes to bring it mainstream.
One final note to this story: I returned to my hotel via the famous Star Ferry across Hong Kong Harbor, but only after discovering that I would have to use cash and not a credit card to purchase the ticket . It turns out that even in some of the busiest, most technological places in the world, there are corners where money is always king.
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
This story was originally featured on Fortune.com