Unocoin Launches a Crypto-ATM Despite RBI’s Ban- Good News for IAMAI?
Not long after the creation of the special Blockchain committee by the Internet and Mobile Association of India (IAMAI) to nurture the existence of Blockchain Technology, Unocoin has launched a fiat-to-crypto ATM in Bengaluru. This move was despite the ban imposed by RBI for preventing banks to have associations with crypto individuals.
The ATM is located in Bengaluru’s Kemp Fort Mall which was launched on the 14th of October made exclusively for Unocoin customers. It will allow the customers to deposit or withdraw money which eventually can be used to buy cryptocurrencies from Unocoin’s website or mobile application.
However, Unicoin strategizes this attempt as a method to crackdown RBI’s ban. It says that the ban has nothing to do with India’s financial economy and hence is not violating any law. As said by Sathvik Vishwanath, Co-founder and CEO of Unocoin that- “The RBI has imposed a ban on banks, regarding money-related transactions, so our customers are not able to buy easily or the ones who have it (bitcoin and its elk) are unable to withdraw their money.”
To use Unocoin’s ATM facility the user has to enter his user ID and the OTP received on the registered mobile number. After successfully depositing funds ranging from 1000-10000 Rupees in the machine, the user’s account details will be updated and the money will be credited and ready to use for trade both on Unocoin and Unodax. To withdraw the money users have to make a request by visiting Unocoin.com or through their mobile application. Consequently, a 12 digit security reference number will be sent to the user to enter in the machine along with an OTP.
The warning by RBI declaring the ban was initially announced on 24 December 2013 and finally on 6 April 2018 condemning Indian banks to seize any activity related to cryptocurrency. As a result of this circular, many groups filed a case against it including the IAMAI. But, the RBI replied saying that the Supreme Court should not interfere in financial decisions especially regarding digital currency. Moreover, the result of this case is still under the process and has the hearing in the coming days.
Keeping in mind, the Unocoin is still offering a peer-to-peer exchange system, the chances of fraud are still to be considered. The exchange has planned to set up more ATM’s in New Delhi and Mumbai.