Unocoin has introduced the first cryptocurrency ATM in India in Bengaluru. The Automated Teller Machine will enable customers to deposit and withdraw a minimum amount of Rs 1,000 from the platform.
The First Crypto ATM in India
A cryptocurrency exchange, Unocoin has launched the first digital currency deposit and dispensing ATM at Kemp Fort Mall in Bengaluru. The cryptocurrency ATM installation seems to be against the stance of the government and reserve bank of India, RBI association concerning cryptocurrency.
RBI ruled earlier this year that financial institutions associated with RBI are not permitted to deal with cryptocurrencies. The financial institutions are also inclusive of ATMs.
The ATM installation which is the first in the country will be circumventing the ruling of the RBI. However, Unocoin acknowledged the ruling of RBI prohibiting dealings in digital currencies, while it stated that it is exploring measures to accommodate newer mechanisms and solutions to reduce the hurdle facing regulatory procedures of the central government.
To deposit through the crypto ATM, KYC compliant customers have to enter their User ID and the OTP that they receive as SMS on their registered mobile number. The user will now confirm the account detail and deposit the fund; this will lead to updating of the Unocoin account immediately.
The withdrawal requires visiting Unocoin’s website or through a mobile platform to specify the desired amount for withdrawal. Afterward, a 12 digit reference number from Unocoin is sent to the user, which the user will enter at the ATM with the OTP sent to the mobile number to make a withdrawal.
Notably, recently, the number of cryptocurrency ATMs have grown from few hundreds to thousands as Genmega and LibertyX partners for better efficiency.
Cryptocurrency Regulations In India
India has no clear cryptocurrency regulations, and efforts have been underway to give the industry a clear-cut definition by the RBI, and Subhash Garg-panel set up in December last year to look into appropriate regulations for the industry.
While Indians are awaiting the report of the panel in December, as the panel round off the last stage of its deliberations, a local trusted financial news outlet, Moneycontrol, reported on the 15th of October that the report might contain a law that will make holding of crypto assets, other than those not approved by the government, a punishable offense. This is expected to be a reflection of the government opinion that unregulated crypto assets should not be allowed to move into the financial system.