Bangalore police have seized an ATM just weeks after it was set up by local cryptocurrency exchange Unocoin.
The Times of India said in a news report on Wednesday that Harish BV, co-founder and chief technology officer of the Unocoin exchange, was arrested on Tuesday as he was operating the ATM which was installed in a shopping mall and revealed on Oct. 14.
According to the report, the Central Crime Branch of the local police seized the ATM, two laptops, a mobile, three credit cards, five debit cards, a passport and Indian rupees worth about $2,500.
“Unocoin did not have any license from RBI, Sebi [Securities and Exchange Board of India] or any other agency to carry out the bitcoin transaction. They were running it without obtaining any trade license from the BBMP [Bangalore government].”
However, Unocoin’s co-founder and CEO Sathvik Viswanath, denied this accusation, saying in the Times of India report:
“The Finance Minister’s statement was clear: cryptocurrencies are not legal tender in India. He did not say ‘illegal tender’. There’s a huge difference. It means you bear the risk of your investment and there’s no regulation for the industry.”