India’s central bank RBI has banned trading of cryptocurrencies as they are not legal tender yet

An entrepreneur was arrested by India’s cyber police for setting up a cryptocurrency ATM in Bangalore. The police have also seized the machine, a first India, which they say was set up without permission.

According to the police, Harish BN, Founder of Unocoin, an online cryptocurrency exchange in India, set up the kiosk violating rules. The country’s central bank, RBI, has banned crypto trading, as it is not a legal tender yet in India.

The ATM, located in Kempfort Mall in Bangalore, allowed customers to deposit and withdraw a minimum amount of Rs 1,000 (US$14). However, it didn’t facilitate buying or selling of digital currencies.

The police have also seized several gadgets from Harish, including two laptops, one mobile, three credit cards, five debit cards, one passport, five company seals and one cryptocurrency device.

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In a press statement, the Cyber Crime department of the Central Crime Branch said: “The ATM kiosk installed by Unocoin in Bangalore’s Kempfort Mall has not taken any permission from the state government and is dealing in cryptocurrency outside the remit of the law.”

Unocoin, however, said in a statement that it did not violate rules and is merely trying newer mechanisms and solutions to address the regulatory hurdles.

Unocoin was planning to install similar ATMs in Mumbai and Delhi.

Founded in July 2013, Unocoin is an online exchange to buy and sell cryptocurrencies.

Photo by Jacob Morch on Unsplash

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