International cryptocurrency trader Bitcoin Exchange prepares to roll out first of hopefully many bitcoin ATMs in Singapore.

Bitcoin, the peer-to-peer digital money system, is evolving from a concept to being an actual accepted form of payment - and Singapore is one of the Asian countries that support it.

According to local media, Bitcoin Exchange, the company that facilitates bitcoin trading, is currently looking for a location to launch the city-state's first bitcoin automated teller machine, with the goal to set up as many as four by year-end. 

Zann Kwan, Bitcoin Exchange director, told local publication MyPaper that the ATM will make the currency more accessible and its acquisition safer because consumers no longer need to wire money overseas and wait a day to complete transactions. The machine also staves off the risk that the seller may default on the deal. 

To convert cash into bitcoin, ATM users must scan a QR code from a downloadable bitcoin wallet on their smartphones. After feeding money into the machine, it will be recorded in the digital equivalent into their bitcoin wallets. The machine, built by British Virgin Islands firm Lamassu, can reportedly convert cash to bitcoin in 15 seconds. 

"There is growing interest in bitcoin both globally and in Singapore, both as an investment and as a mode of exchange," Kwan was quoted as saying. She also added that given the city-state's "open and pragmatic financial environment," the prospects for bitcoin are huge. At present, at least eight merchants accept cryptocurrency as payment. 

While bitcoin is gaining a fan base worlwide, the idea of a virtual currency has also been panned by financial observers because of the absence of regulation and appropriate sanctions. (To view another article here about bitcoin, how it works and the people involved in it, click here.)

"To date there have been hundreds of Bitcoin thefts, and there has been no recoveries of the funds, nor any prosecutions... Until regulations and legal enforcement catch up with this craze, the cybercriminals will run wild," said Peter Leeds, publisher of Peter Leeds Penny Stocks, in email to WealthBriefingAsia. 

"The entire structure of bitcoin is intended to move 'funds' from point A to point B. The thieves simply get in the way of these transactions and affect where the currency ends up -- specifically point C," he added.

According to a recent report by the Law Library of Congress, there is a worldwide concern over the rising popularity of bitcoins. The survey said that only a few, notably China and Brazil, have specific regulations applicable to bitcoin use. 

Bitcoin, being a virtual currency, is not regulated by the Monetary Authority of Singapore. The MAS has been quoted as saying that businesses may use this mode of payment, but "at their own risk."