Unocoin Install the First Cryptocurrency ATM in India
The first cryptocurrency cash machine has been installed in India. Virtual currency exchange, Unocoin is responsible for installing the very first cryptocurrency deposit and dispensing ATM in Bengaluru. Customers are now able to deposit and withdraw a minimum amount of Rs 1000 from the platform at Kemp Fort Mall.
This may come as a surprise to some considering the Indian government and Reserve Bank of India’s (RBI) clampdown on cryptocurrency in India. The Union Finance Minister Arun Jaitley has previously declared that bitcoin is not a legal tender in the country and issued a warning to investors who have been buying crypto as it is not regulated by a governing body. In addition, earlier in the year, RBI alerted crypto users to the risks associated with buying and selling virtual currencies such as bitcoin and demanded that all financial institutions stop dealing with any individuals or entities trading in virtual currencies within three months.
RBI said services such as maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/sale of virtual currencies should be stopped.”
Following the crackdown, India’s crypto dealings have plummeted, with many exchanges ceasing to operate. However, one company is remaining loyal to crypto, and Unocoin’s new kiosk cleverly bypasses the RBI’s regulation against bitcoins transactions. Earlier in 2018, RBI ruled that financial organisations associated with RBI are prohibited from dealing in virtual currencies. However, ATMs are not a financial institution with RBI. Unocoin is one of India’s leading bitcoin companies which has been operating in the Indian bitcoin and blockchain space since December 2013. The company has pledged to provide its customers with the highest level of security, constantly innovating and improving services to provide a “smoother and wider experience.”
Now it is on a mission to help its population to develop the crypto industry by selling, storing, using and accepting digital currency. In a statement, a Unocoin spokesperson justified its ATM installation saying that the company was trying to cater for “newer mechanisms and solutions to reduce the hurdle facing (regulatory) hurdles by the present central governments stand.”
Following the launch of its first ATM in Bangalore, Unocoin will install further kiosks in Mumbai and Delhi over the next few weeks. Unocoin’s customers can now deposit and withdraw Indian Rupee (INR) from the Kiosk - subject to some limits. The minimum amount for deposit and withdraw is 1000 INR and must be in multiples of 500 INR. To deposit rupees into their Unocoin account, users have to type in their user ID and OTP number which is sent to them via text message on their mobile phone. They then have to verify their account details before depositing funds into the ATM. Their Unocoin account is then instantly updated with the deposited funds which they can then use to buy crypto assets such as bitcoin or Ethereum.
These assets can also be sold on the Unocoin platform and withdrawn via a mobile app, following the receipt of a 12-digit reference number. Just to clarify, crypto hasn’t actually been banned in India, but at the moment regulations prohibit you from buying anything with the digital currency. The way the new Unocoin ATM will get around this is that you can convert your crypto coins into Indian currency – with no link to the Indian banking system.
By Joy Lewis.