Why 1st bitcoin ATM in Bengaluru seized: Reasons

The first bitcoin ATM got seized in Bengaluru: check latest bitcoin news on cryptopostgazette

As we all knows still India is little behind in Cryptocurrency trading. India do not have any bitcoin ATM now, but a 37-year-old Unocoin Technologies co-founder, Harish BV, setup India’s first bitcoin ATM in Bengaluru few days without approval of RBI. The ATM got seized by Bengaluru police on Tuesday. The police said it was illegal since it was set up without approvals.

 1st bitcoin ATM in Bengaluru
Why 1st bitcoin ATM in Bengaluru seized: Reasons

Bitcoin ATM location in Bengaluru

Harish had installed the Bitcoin ATM at Kemp Fort Mall on Old Airport Road with his partner Sathvik Viswanath.

Statements of TOI, Crime Branch and co-founder of Unocoin on Bitcoin ATM (Kiosk) seized

According to Times of India, the kiosk facilitated cryptocurrency deals. A teller machine, two laptops, three credit cards, a mobile phone, five debit cards, a passport, a cryptocurrency device, five seals of Unocoin company, and Rs 1.8 lakh were seized by the Central Crime Branch.

The crime branch said in a statement, “The ATM kiosk installed by Unocoin in Bengaluru’s Kempfort Mall has not taken any permission from the state government and is dealing in cryptocurrency outside the remit of the law.” Harish BV was produced before the ACMM court that sent him to police custody for seven days. Police added that more arrests are likely.

Sathvik Viswanath, co-founder of Unocoin, told the daily that it is perfectly legal for Indians to buy and sell bitcoin. He said that they got a lot of bad press after the Finance Minister announced a ban in February 2018. He said that the minister’s statement was clear, that cryptocurrencies are not legal tender in India but he never said that it was “illegal tender”. Viswanath said that there was a huge difference, and what the minister meant was that you bear the risk of your investment and there is no regulation in the industry. Unocoin was planning to install similar ATM kiosks in Mumbai and Delhi

The kiosk was established for bitcoin buyers and seller for easy buying and selling.

Setup a Bitcoin ATM machine by private organisation is illegal in India

To set up a bitcoin ATM is really a big deal for anyone, it could be unprofitable and risky. In small countries any private organisation can set up bitcoin ATM but in India only banks can set up such machines with the approval of RBI. Getting the right permissions as a private ATM operator is not so easy. The costs of buying and maintaining an ATM machine with security are high and the returns might be low considering low Bitcoin users.

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About the Author: Rupali Gupta

Rupali Gupta is a blogger, digital marketer and gadget freak, she loves to grab everything happing in the tech and crypto industry. Connect with her at @meetrupaligarg, google plusand about page

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