The co-founder of Indian crypto exchange Unocoin has been arrested shortly after setting up an allegedly unregistered Bitcoin ATM machine in Bangalore, English-language daily Times of India reports Oct. 24.
The 37-year-old co-founder, Harish BV, was apprehended by police after having reportedly installed the ATM kiosk at Kemp Fort Mall on Old Airport Road, together with fellow Unocoin co-founder Sathvik Viswanath.
The latter has not been arrested, as per media reports.
Indian business magazine Business Today cites a press statement from the Central Crime Branch, which claims the ATM installation did not receive "Any permission from the state government and is dealing in cryptocurrency outside the remit of the law."
CCB officials are further reported to have seized "a teller machine, two laptops, a mobile, three credit cards, five debit cards, a passport, five seals of Unocoin company, a cryptocurrency device and Rs 1.8 lakh."
"Our Machine didn't go well with few mainstream media reports who projected it under a negative light. The machine is still under final testing mode and it will be up and running in the upcoming week. The machine has been temporarily moved from its original place of installation."
The Times of India reports the machine was used to facilitate cryptocurrency deals, with Indian digital newspaper The News Minute outlining that it had been set up in response to the Reserve Bank of India's stringent ban on financial institutions dealing in cryptocurrencies.
TNM further cites Unocoin as saying that it had attempted to establish "Newer mechanisms and solutions to reduce the [regulatory] hurdles [caused] by the present central government's stan[ce]." Users of the machine could reportedly withdraw and deposit Bitcoin, but not buy or sell the cryptocurrency.
"The minister's statement was clear: Cryptocurrencies are not legal tender in India. He did not say 'illegal tender.' There's a huge difference. It means you bear the risk of your investment and there's no regulation for the industry."
As previously reported, Unocoin this summer announced it had suspended fiat deposits and withdrawals "As per orders" from the RBI. Crypto asset deposits nonetheless continue to be active on both Unocoin's crypto-rupee trading platform and partner crypto-crypto exchange Unodax.
Police Arrest Indian Crypto Exchange Co-Founder for Unregistered 'Illegal' Bitcoin ATM
Published on Oct 24, 2018
by Cointele | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.