Top Indian Cryptocurrency Exchange 'Unocoin' Co-Founder Arrested Over 'Supposed' Bitcoin ATM

in india •  8 months ago  (edited)

It was about 2 weeks ago I wrote a speculative piece about the possibility of Unocoin installing a BTC/Altcoin vending machine. Ever since it wasn't possible to report more on this with my schedule and lack of a proper base of operation.

Hence, I decided to simply watch this space closely before making further comments.

But a few things have become very clear ever since.

Uncoin's supposed Bitcoin ATM wasn't a BTC/Alt-coin vending machine. It was merely a cash deposit and cash withdrawal machine for Unocoin's customers.

Digital Assets LLP technically was the only one who owned and ran a BTC vending machine at New Delhi. Which since has been removed and their twitter account has gone private as well.

DpsNKjPW4AAA-Pd.jpg

So technically Unocoin never installed a BTC ATM where you could encash BTC for INR and vice versa. Cash handling restrictions are applied to any machine dispensing cash in India. As we know, there is no regulation around cryptocurrencies in India just yet so there was no way anyone can 'legally' run a BTC ATM for any conversions.

Why was Unocoin's co-founder arrested then?

Cyber Crime Branch (CCB) arrested Unocoin Co-founder Harish BV as they allegedly did not take appropriate permissions before installing the 'kiosk'. If it was indeed a cryptocurrency vending machine, I wonder which government authority one needs to go to get permissions. Food for thought eh?

Mainstream media hype is partly to blame for this mess. As usual they hyped it up as a cryptocurrency machine even when Unocoin stated during their launch that it wasn't one. Some media channels have allegedly accused the co-founder of money laundering. However, the machine seems to have brought unnecessary attention towards this initiative.

Considering the pending court case against RBI in the cryptocurrency matter. This move could've been avoided entirely. Hindsight as they say is 50/50.

This move from CCB against Unocoin even if valid doesn't set a very good precedent given the issues in this space in India already. A totally avoidable situation but there's a lot of learning for everyone in this.

Let's see how things go from here on. Cryptocurrency community is relatively small and I will certainly have more to say on this matter soon.

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As in the news, both the Founder has been arrested. Slowly and steadily all the Cryptocurrencies companies will be going out of the country.

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sir, maine Uncoin's supposed Bitcoin ATM wasn't a BTC/Alt-coin vending machine, india me iske bare me aapke pichle post se jana tha aaj Unocoin's co-founder arrested ke bare me jankari aapki blog se mili. [ye valid doesn't ] Cryptocurrency sir ak revolution hai kisi bhi chiz ko itne aasani se jagha nahi milti uske liye badi ladai ladni padti hai sar aage bhi aapke bgog se naye naye jankari milti rahegi.nye nye jankariya share karne ke liye dhnyabad. i am waiting for your next post.....

Great news!

I was not aware of Unocoin's plans for crypto to fiat conversion through this machine. ...I still doubt it. But if it comes true, this will be the first machine to do this in India.

Otherwise, the credit for installing first Bitcoin Teller Machine in India goes to Digital Assets LLP that installed it in Delhi some 5 months back. But this machine can only convert Fiat to Crypto and not vice-versa. And it works with BTC, BCH & ETH only.

Since Digital Assets said that Unocoin is putting this machine after discussion with them, I assumed that it would also be fiat to crypto only. But who knows, good times are coming!

Fingers crossed.

Nothing is going in right direction in India these days. Fuel price is rocketing, CBI's feud has exposed the way government and its agencies work. So, it was not unexpected that such incidents happened.

As usual they hyped it up as a cryptocurrency machine even when Unocoin stated during their launch that it wasn't one.

Damn! This goes to show mainstream media can't be trusted. Will update my post.

·

Mainstream Media has gone to shit. All they care for is TRP's nothing else matters.

Journalism used to be a task of finding the truth but now it has become the task of Making up the Truth.

Believe it or not the Blockchain Race is on between all Countries and by the current situation it seems India will be left to dust by other countries.

This decision will discourage the Other exchange owners to do something new in cryto industry in India for Indian users. Government should support Crypto and Block chain but it's bad for Indian users.
SC and government are careless about this technology and currency.

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Wow,its so exited.If this will possible ,every thing will be all right too.Besides being banking ban,this exchange wants to bring this revolution in india,heads off to their bravery and great efforts.Thanks for sharing such a good news,best wishes dear.

  ·  8 months ago (edited)

If he would have taken the permissions than it would have been a succcess i guess.
Thanks for sharing it sir

@firepower, Yes, this situation is really unfortunate and i don't know what the Background is but in my opinion and as per news for sure Mainstream Media hyped this situation and this news as Cryptocurrency and Bitcoin ATM and as per **UNOCOIN they never said it's an ATM. And now the news is, UNOCOIN didn't took needed Approvals for this Machine. But whatever it is, after launch of this Machine Crypto Enthusiasts saw some boosting aspect for sure but now this situation is really unfortunate to see. And now we have to see where will it move because in my opinion this is the time when we have to explore the Crypto Economy to more extent because in Crypto Sphere lot of things are going on.

Wishing you an great day and stay blessed. 🙂

Mainstream Media has gone to shit. All they care for is TRP's nothing else matters.

Journalism used to be a task of finding the truth but now it has become the task of Making up the Truth.

Believe it or not the Blockchain Race is on between all Countries and by the current situation it seems India will be left to dust by other countries.

Its difficult to say as of now what govt or rbi is thinking to do. They are intentionally dragging it for long because if they want to make it illegal then they can easily do that. Since they are taking too much of time to come out with decision then somewhere we can hope a bit of positivity. Though we shouldn't be more positive as they are totally unpredictable. Fingers crossed 🤞

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May be there is a new rule which prevents people from installing marketing kiosks too ?!!

A big blunder by Unocoin.
They should have waited for court's verdict.

I was really shocked by the news actually. We all thought Unocoin will set a good example to all other crypto companies in India but this arrest is definitely going to make other people think well before taking any initiatives.

As you mentioned it is still gray for us on whom to approach for permissions. Future for crypto is getting dark in India. We have definitely do something about it.

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