In a country like India where people see cryptocurrency as fraud, we can’t predict the life of crypto ATMs to be very long.
Recently, the first-ever crypto ATM set up by virtual currency exchange Unocoin was seized by Bengaluru police and Harish BV, co-founder of Unocoin was arrested by the police.
The ATM established last week but was seized off on October 23. It was not functioning full-fledged as many upgrading operations were still working.
The cyber crime department of Bangaluru police said that the ATM which was established by Unocoin in the Bengaluru’s Kemp Fort Mall had not taken any permission from the government and the ATM was dealing outside the regulations and authorities law.
Not just the ATM but the police has seized two laptops, a mobile phone, three credit, and five debit cards, one passport, around five seals of the company Unocoin, a device based on cryptocurrency and around ₹1.8 lakh which is around 2,500 USD.
The firm installed the ATM for its customers. The ATM deals with depositing and withdrawing money from the digital wallets. The amount later can be used to purchase the cryptocurrencies from the website of Unocoin or from the app available on the phone.
Sathvik Vishwanath, CEO, and co-founder of Unocoin, stated that the firm is planning to launch 30 more new ATMs in the upcoming months. The plan is to launch it across the country in order to build crypto atmosphere in the country.
Unocoin had already explained in the past that ATMs have nothing to do with the banking system of the country; therefore, it couldn’t violate any rules or laws of the Reserve Bank of India (RBI). However, in a blog post in January, they stated that as per the norms of RBI, cryptocurrency exchanges are not allowed to set up ATMs across the country.
The Unocoin has pulled down the bank to the higher court, Supreme Court, where they have to wait for the final hearing.