Only a week after India’s first Bitcoin ATM was launched to much fanfare, regional authorities have confiscated the two-way crypto machine and arrested the initiative’s founder.
Following the recent hype, the Indian police, on Tuesday, seized the cryptocurrency Vending Machine on the grounds that the ATM was illegal and had been set up without any legal approval from the proper officials.
According to a report by the Times of India (TOI), the Co-founder of Unocoin, Harish BV was arrested for running the Crypto ATM kiosk. He was produced before the court of the Additional Chief Metropolitan Magistrate and was ordered to remain in police custody for seven days.
According to police, the Bitcoin ATM was a peer-to-peer platform for individuals who wanted to buy or sell Bitcoin. They also requested the public to not invest their money into cryptocurrencies by being lured into the expectation of making huge profits.
The seizure includes a number of electronic equipment like two laptops, a teller machine, five seals of Unocoin Company, five debit cards, three credit cards, a passport, Rs.1.8 million and a digital coin device.
Unocoin co-founder Sathvik Viswanath defended his company’s business model, saying its perfectly legal for Indians to buy, own or sell bitcoins.
The Indian Cryptocurrency Enthusiasts are totally shattered from the move by the authorities and believe that the Indian Government lacks behind in the knowledge about Blockchain and Cryptocurrencies.