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Unocoin co-founder arrested a week after opening first cryptocurrency ATM

The ATM kiosk was installed last week aiming to bypass the Reserve Bank of India ban on banks from dealing with cryptocurrency firms

October 24, 2018 / 01:54 PM IST

Bengaluru police arrested cryptocurrency exchange Unocoin co-founder barely a week after the company opened its first cryptocurrency ATM in the city, the News Minute reported. City’s Cyber Crime department lodged a case against the company for installing an ATM without requisite permissions.

The police arrested 37-year-old Harish BN and seized several gadgets including laptops, mobile phones and Rs 1.79 lakh in cash from him.

“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," the report quoted the Cyber Crime department of the Central Crime Branch.

The company said it had moved the ATM temporarily and blamed negative media reports for the police action. “Our Machine didn't go well with few mainstream media reports who projected it under a negative light,” Unocoin said in a tweet.

“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.”

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The ATM kiosk was installed last week aiming to bypass the Reserve Bank of India ban on banks from dealing with cryptocurrency firms.

Customers of Unocoin could withdraw and deposit cash from the kiosk without any involvement of banks.

The company was planning to open two more ATMs—one each in Mumbai and Delhi.
Moneycontrol News
first published: Oct 24, 2018 01:54 pm

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