Police Seizes First Indian Crypto ATM In Week
Law enforcers of the Indian city of Bangalore dismantled the country's first crypto ATM at the local mall. Earlier in October, it was set by Unocoin, one of the few exchanges that still work despite the harsh central bank policy towards crypto companies.
Also the investigators arrested one of the startup founders and confiscated two laptops, three credit and five debit cards, a mobile phone, a passport and rupees worth $2500.
The police considered installation of the ATM illegal since Unocoin did not ask the authorities for permission. Moreover, the local law enforcers urged the public not to invest in cryptocurrencies with the hope of making big profits.
In turn, Sathvik Viswanath, the head of the company, denied these allegations and said that there is a “huge difference” between illegal and not legal means of payment. The latter means there is no regulation in this area, so an investor agrees to take on all responsibilities.
Back in April 2018, the Central Bank of India banned local banks from cooperating with cryptocurrency companies. The Unocoin team installed the crypto ATM to receive fiat deposits from its customers without bank participation, as they reported on October 17. Then the startup planned to deliver the same devices in Mumbai and Delhi, despite the regulatory policy.
The Indian law enforcement officers reported that Unocoin does not have any authority to manage this type of ATMs. The arrested exchange co-founder will be held in custody for seven days, while the police assume the possibility of more arrests.
Previously, the Crypto.com platform issued a Visa card for cash withdrawals.