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"BTC China,\u00A0until recently the world\u2019s largest\u00A0Bitcoin\u00A0exchange, has rolled out an ATM Web app called Picasso\u00A0that\u00A0lets you sell Bitcoins in return for cold hard cash -- but both parties have to be physically present in order to carry out the exchange.\r\n\r\nAt first glance, this is a highly inconvenient arrangement.\u00A0A BTC China spokesperson tells TNW that because it isn't a legal financial institution, it cannot transfer money to bank accounts directly -- and in order to circumvent that, the exchange between buyer and seller has to be a physical payment of cash.\r\n\r\nThe move looks likely to be a response to China\u2019s recent crackdown on Bitcoin, which saw a few local Bitcoin exchanges being forced to terminate yuan settlements after they were cut off by banks. Without the availability of payment processing, the only way to buy Bitcoin in yuan would be with cash. Though BTC China didn\u2019t receive any notification that its banking and clearing services would be terminated, by launching the ATM Web app and requiring exchanges to be made in person in cash, it's clearly looking to minimize the potential impact of government rules covering digital currencies.\r\n\r\nYet it's not only about yuan settlements, as BTC China's Picasso app\u00A0supports all major currencies. There are also other benefits to trading offline via the app, mainly for those looking for a more straightforward experience. Traditionally, in order to deposit cash for Bitcoin, you have to find a physical Bitcoin ATM where you insert the cash, after which the Bitcoins will be deposited into your mobile wallet. Now, you can purchase the Bitcoin directly from the seller and avoid the hassle of registering and authenticating the processes on a Bitcoin exchange.\u00A0\r\n\r\n\r\n\r\nIt also ensures that sellers can receive the money on the spot after transferring their Bitcoins.\u00A0Picasso even gives sellers another advantage: they can set their own profit margins. On the other hand, you can't control the rate in a typical Bitcoin exchange.\r\n\r\nTo use Picasso ATM, you have to sign up for a BTC China account, deposit Bitcoins into your Picasso mobile wallet, then carry out the trades accordingly.\r\n\r\nHowever, taking Bitcoin trading offline removes the sense of anonymity that the cryptocurrency traditionally brings. This could mean that the Bitcoin scene in China is set to undergo a transformation, with the currency taking on a different role from what it currently looks like now.\r\n\r\nHeadline image via Josep Lago/AFP/Getty Images"^^<http://www.w3.org/2001/XMLSchema#string>
<http://thenextweb.com/asia/2014/04/15/btc-china-preempts-chinas-crackdown-atm-app-exchanges-cold-hard-cash-bitcoins/>