Cryptocurrency exchange Kiosk

1. Why Choose a One-Way Configuration?

Key Advantages of One-Way Machines:

• Lower hardware cost — simplified cash module (acceptor only or dispenser only)

• Reduced regulatory complexity — single-direction flow simplifies compliance in certain jurisdictions

• Faster onboarding — focused user interface reduces transaction time

• Smaller footprint — more compact chassis designs for space-constrained locations

2. Buy-Only Crypto ATM (Cash-to-Crypto)

The customer inserts physical cash and receives cryptocurrency sent directly to their personal wallet.

2.1 Hardware Configuration

2.2 Step-by-Step Workflow

Step 1: Language & Transaction Selection

• Customer approaches the ATM and selects preferred language

• Selects "Buy Cryptocurrency" on the home screen

• Available fiat currencies displayed based on machine configuration

Step 2: Cryptocurrency Selection

• Customer selects desired cryptocurrency from supported list:

  • Bitcoin (BTC)

  • Ethereum (ETH)

  • Tether (USDT) — TRC-20 / ERC-20

  • USD Coin (USDC)

  • Litecoin (LTC)

  • And other supported tokens per operator configuration

Step 3: Wallet Address Input

• System prompts: "How would you like to provide your wallet address?"

• Option A — QR Code Scan (Recommended): Customer presents their mobile wallet QR code to the scanner. System captures address and validates the format against the selected blockchain network.

• Option B — Manual Entry: Customer types wallet address using the on-screen keyboard. System performs checksum validation.

• Option C — SMS/Email Delivery: For first-time users without a wallet, the ATM can trigger wallet creation via integrated third-party services and deliver credentials by SMS or email (where supported).

Step 4: Compliance Verification (KYC/AML)

• System determines verification tier based on transaction amount:

Tier	Transaction Limit	Verification Required
Tier 1	Up to $500 / €500 equivalent per transaction	Mobile phone number (SMS verification code)
Tier 2	Up to $3,000 / €3,000 equivalent per day	Government-issued ID scan + liveness detection facial match
Tier 3	Up to $10,000 / €10,000 equivalent per day	Full KYC: ID document, proof of address, source of funds declaration

• ID documents are scanned by the integrated document reader

• Facial recognition with liveness detection ensures the person matches the ID

• AML screening runs in real time against global sanctions databases

• Privacy Note: All personal data is encrypted and processed locally where regulations require; cloud-based processing is available in jurisdictions that permit it

Step 5: Exchange Rate & Fee Display

• System aggregates live exchange rates from configured liquidity providers

• Displays a quote with a countdown timer (typically 30–90 seconds):

┌─────────────────────────────────────────┐
│          BUY BITCOIN (BTC)              │
│                                         │
│  You Pay:    $500.00 USD                │
│  Exchange Rate: 1 BTC = $63,250.00      │
│  You Receive: 0.007884 BTC              │
│                                         │
│  Transaction Fee: $3.50 (0.7%)          │
│  Network Fee:    ~$1.20 (estimated)     │
│  Total Cost:     $504.70                │
│                                         │
│  Quote valid for: 00:47 seconds         │
│                                         │
│      [ CONFIRM ]    [ CANCEL ]          │
└─────────────────────────────────────────┘

• Transparent Fee Breakdown: All costs are itemized — no hidden charges

• Fee structure is fully configurable by the operator (fixed fee, percentage-based, or hybrid)

Step 6: Cash Insertion

• Customer inserts banknotes into the bill acceptor slot

• Real-time counting display updates as each note is accepted

• Bill acceptor uses multi-spectral sensors (UV, magnetic, infrared, optical) to validate authenticity

• Rejected notes are immediately returned to the customer

• Customer can insert multiple notes up to the configured transaction limit

• Screen shows: "Inserted: $340.Remainingtoreachyourorder:$340.Remainingtoreachyourorder:160"

Step 7: Order Execution

• Once the full amount (or desired partial amount) is inserted, customer taps "Buy Now"

• System briefly locks the exchange rate (rate-lock window, typically 5–10 seconds)

• The transaction engine:

  1. Routes the buy order to the best available liquidity provider via encrypted API

  2. Liquidity provider executes the order instantly or at market

  3. Receives confirmation with executed rate and crypto amount

  4. Initiates blockchain transfer to customer's wallet address

Step 8: Confirmation & Receipt

• Transaction confirmation appears on screen, typically within 5–30 seconds

• Display shows:

  • ✅ "Transaction Successful!"

  • Cryptocurrency amount sent

  • Final exchange rate applied

  • Transaction Hash (TXID) — tap to view on blockchain explorer

  • QR code linking to the transaction on a block explorer

• Receipt printer outputs a physical receipt with all transaction details

• Customer can choose to receive a digital receipt via SMS or email

Step 9: Post-Transaction

• Machine returns to home screen ready for the next customer

• The operator's back-office dashboard updates in real time with transaction details, cash levels, and machine status

3. Sell-Only Crypto ATM (Crypto-to-Cash)

The customer sends cryptocurrency from their personal wallet to the ATM's generated address and receives physical cash.

3.1 Hardware Configuration

3.2 Step-by-Step Workflow

Step 1: Transaction Initiation

• Customer approaches the ATM and selects "Sell Cryptocurrency"

• Chooses the cryptocurrency they wish to sell from the supported list

• Selects preferred fiat currency for cash payout

Step 2: Amount Specification
Two input options:

• "How much cash do you want?" — Customer enters desired fiat amount; system calculates required crypto

• "How much crypto will you send?" — Customer enters crypto amount; system calculates fiat payout

Step 3: Compliance Verification (KYC/AML)

• Tiered verification as described in the Buy-Only section

• For sell transactions, enhanced source-of-funds checks may apply per local regulations

• Blockchain analytics integration: incoming crypto is screened against known illicit addresses using integrated tools (e.g., Chainalysis, Elliptic)

Step 4: Rate & Fee Display

• System displays the sell-side exchange rate with countdown timer:

┌─────────────────────────────────────────┐
│          SELL BITCOIN (BTC)              │
│                                         │
│  You Send:   0.007884 BTC               │
│  Exchange Rate: 1 BTC = $62,850.00      │
│  You Receive: ~$495.63 USD              │
│                                         │
│  Transaction Fee: $3.47 (0.7%)          │
│  Estimated Cash Out: $492.16            │
│                                         │
│  Quote valid for: 00:41 seconds         │
│                                         │
│      [ CONFIRM ]    [ CANCEL ]          │
└─────────────────────────────────────────┘

Step 5: Deposit Address Generation

• Upon confirmation, the ATM generates a unique one-time deposit address specifically for this transaction session

• Both QR code and alphanumeric address are displayed:

  • QR code: Customer scans with their mobile wallet app

  • Address: Can be copied and pasted if using a wallet on another device

• The address expires after the quote validity window or upon successful payment

Step 6: Customer Sends Cryptocurrency

• Customer sends the exact amount of cryptocurrency from their personal wallet to the displayed address

• The ATM screen updates to show: "Awaiting transaction... Please do not leave."

• Optionally, the customer can enter their mobile number to receive an SMS notification if the blockchain confirmation takes longer than expected (allowing them to step away and return)

Step 7: Blockchain Confirmation Monitoring
This is the most technically critical phase. The ATM performs real-time blockchain surveillance:

• The ATM monitors the mempool/transaction pool for the incoming transaction

• Once detected, the screen displays: "Transaction detected — waiting for 1 confirmation..."

• A progress indicator keeps the customer informed

Step 8: Cash Dispensing

• Once the required confirmations are received, the system authorizes cash dispensing

• The high-speed dispenser ejects the correct mix of denominations

• Customer collects cash from the dispenser tray

• If the customer fails to collect the cash within a configurable timeout (e.g., 30 seconds), the machine retracts the notes for security and the transaction is flagged for operator review

Step 9: Receipt & Completion

• Receipt printed with full details:

  • Transaction hash (TXID) and link to block explorer

  • Cryptocurrency amount sent

  • Exchange rate applied

  • Cash amount dispensed

  • Date, time, and terminal ID

• Machine returns to home screen

4. Shared Technical Architecture

Both Buy-Only and Sell-Only configurations share Hongzhou Smart's core technical infrastructure:

4.1 Liquidity Engine

• Multi-Provider Aggregation: Connects to 5+ major exchanges and OTC desks simultaneously

• Smart Order Routing: Automatically selects the provider with the best rate at order moment

• Failover Protection: If primary provider fails, order routes to next best in milliseconds

• Operator Margin Control: Set your spread — fixed percentage, tiered by volume, or dynamic

4.2 Security Framework

• HSM-Grade Key Storage: Private keys secured in FIPS 140-2 Level 3 compliant hardware security modules

• Encrypted Communications: All data in transit protected by TLS 1.3 with perfect forward secrecy

• Physical Security: Anti-drill, anti-pry chassis with vibration and tilt sensors; automatic key destruction on tamper detection

• Hot Wallet Limits: Configurable maximum balance held in operational wallets, with automatic sweeping to cold storage

4.3 Remote Management Platform

• Real-Time Dashboard: View all machine statuses, cash levels, transaction volumes, and revenues

• Remote Configuration: Adjust exchange rates, fee structures, KYC tiers, and supported cryptocurrencies from a single web console

• Automated Alerts: Cash-low warnings, maintenance reminders, tamper alerts, and suspicious transaction flags

• Firmware OTA Updates: Over-the-air software and firmware updates pushed remotely to the entire fleet or individual machines

4.4 Compliance Engine

• Modular KYC: Configure verification tiers per jurisdiction

• Real-Time Sanctions Screening: Integrated with global watchlist databases

• Transaction Monitoring: Automated suspicious activity pattern detection

• Audit Trail: Immutable log of all transactions and operator actions

5. Workflow Diagram — One-Way ATM Summary

┌─────────────────────────────────────┐    ┌─────────────────────────────────────┐
│          BUY-ONLY ATM               │    │          SELL-ONLY ATM              │
│         (Cash → Crypto)             │    │         (Crypto → Cash)              │
├─────────────────────────────────────┤    ├─────────────────────────────────────┤
│                                     │    │                                     │
│   1. Select "Buy Crypto"            │    │   1. Select "Sell Crypto"           │
│               ↓                     │    │               ↓                     │
│   2. Choose Cryptocurrency          │    │   2. Choose Cryptocurrency          │
│               ↓                     │    │               ↓                     │
│   3. Scan/Enter Wallet Address      │    │   3. Enter Desired Fiat/Crypto Amt  │
│               ↓                     │    │               ↓                     │
│   4. KYC/AML Verification           │    │   4. KYC/AML Verification           │
│               ↓                     │    │               ↓                     │
│   5. Confirm Live Rate & Fees       │    │   5. Confirm Live Rate & Fees       │
│               ↓                     │    │               ↓                     │
│   6. Insert Physical Cash           │    │   6. Scan ATM Deposit QR Code       │
│               ↓                     │    │               ↓                     │
│   7. System Authenticates Notes     │    │   7. Send Crypto from Wallet        │
│               ↓                     │    │               ↓                     │
│   8. Order Executed via Liquidity   │    │   8. Await Blockchain Confirmations │
│               ↓                     │    │               ↓                     │
│   9. Crypto Sent to Customer Wallet │    │   9. Cash Dispensed to Customer      │
│               ↓                     │    │               ↓                     │
│  10. Print Receipt with TXID        │    │  10. Print Receipt with TXID        │
│                                     │    │                                     │
└─────────────────────────────────────┘    └─────────────────────────────────────┘

6. Choosing the Right Configuration for Your Market

Hongzhou Smart's one-way Crypto ATM configurations deliver the same institutional-grade security, flexible compliance framework, and operator-centric remote management as our flagship two-way machines — optimized for specific market needs at a more accessible price point.

Whether you are driving crypto adoption in a retail-first market with a fleet of Buy-Only machines, or serving remittance corridors with Sell-Only terminals, Hongzhou Smart provides the hardware reliability, software intelligence, and global deployment expertise to power your business.

Interested in deploying one-way or two-way Crypto ATMs?

Contact our regional sales team for a customized proposal.

Hongzhou Smart — The Right Machine for Every Market.