In line with a local news report by ‘Times Of India,’ the co-founder of Indian crypto exchange Unocoin has been arrested shortly after setting up an allegedly unregistered Bitcoin [BTC] ATM machine in Bangalore, India. The co-founder ’Harish BV’, was arrested by the police after he reportedly installed an ATM booth at Kemp Fort Mall on Old Airport Road, besides with fellow Unocoin co-founder Sathvik Viswanath. The latter has not been in remission, according to media reports.
Indian business magazine Business Today [BT] cites a press announcement from the Central Crime Branch [CCB], that claims the ATM installation failed to receive “any permission from the government and is dealing in cryptocurrency outside the remit of the law.”
CCB officers further reported to have seized “a teller machine, 2 laptops, a mobile, 3 credit cards, 5 debit cards, a passport, 5 seals of Unocoin company, a cryptocurrency device and around 1.8 lakh rupees (i.e $2,460 USD).”
Harish BV was reportedly conferred before an ACMM [Additional Chief Metropolitan Magistrate] court, that sent him to police custody for 7 days. Police are said to possess that even more arrests are likely, and to have appealed to the general public “not to be lured by the prospect of earning immense profits” through crypto.
As per a report by ‘The Times of India,’ the machine was accustomed facilitate cryptocurrency deals, with Indian digital newspaper ‘The News Minute’ [TNM] revealing that it had been set up in response to the Royal Bank of India [RBI’s] demanding ban on financial establishments dealing in crypto’s.
TNM additionally cites Unocoin stating that it had tried to ascertain “newer mechanisms and solutions to scale back the regulatory hurdles caused by the current Govt.’s Stand.”
Referring to the Finance Minister, Arun Jaitley’s 2018-19 budget speech, Unicoin’s Viswanath is quoted by “The Times Of India” Stating that:
“The minister’s statement was clear: Cryptocurrencies don’t seem to be medium of exchange in India [Cryptocurrencies are not legal tender in India]. However, he didn’t mentioned they are “illegal tender” either. There’s an enormous difference between the two which means that you bear the chance of your investment and there’s no regulation for the industry.”