With India’s harsh stance on cryptocurrency, it comes as no surprise that the country’s first Bitcoin ATM would come with complications. The Cybercrime Police Department in Bengaluru of the Central Crime Branch (CCB), has seized the Bitcoin ATM before it was even ready for use.
Cryptocurrency exchange, Unocoin, launched the south Asian country’s first Bitcoin ATM in the capital of India’s southern Karnataka state, Bengaluru. While the ATM was installed, it had to begin operations as the system was still being upgraded.
The did not stop local authorities from impounding the unit as well as arresting Unocoin’s co-founder Harish BV. The Cyber Crime department of the Central Crime Branch (CCB) also included in the seizure a slew of other evidence, including a smartphone, laptops, a smartphone, $2,500 worth of the country’s fiat currency, Indian Rupees, a passport, and a variety of credit cards.
Harish has already been seen a processed for further questioning by the chief metropolitan magistrate court.
While the exchange probably thought they were in compliance with India’s central banks proclamation that digital assets are not legal tender, the machine was confiscated nonetheless. The ATM could only be used to deposit and withdraw cash from users crypto wallets, could not be used with bank issued cards. Co-founder and CEO of Unocoin Sathvik Vishwanath, claims that Indians can legally purchase and sell cryptocurrencies, and had planned on installing 30 Bitcoin ATMs throughout the country.