It doesn’t matter who you are! You break the law and you will be behind bars!
The co-founder Harish BV of the largest Bitcoin Exchange Unocoin was arrested by the police for running a Bitcoin ATM kiosk service in Bangalore and various other parts in India. But, what happened? Bitcoin and other cryptocurrencies were officially banned in February and running Bitcoin ATM kiosks is illegal every since the ban.
The Bitcoin ATM kiosk was set up in October and the aim was to bypass the ban passed by the Reserve Bank of India. Ever since the ban, the bank accounts of all the crypto-exchanges had to be closed down. The hearts of many crypto-enthusiast were broken and many Indians took their rage to Twitter.
However, the Unoncoin Exchange users were still allowed to withdraw or deposit cast from the Bitcoin ATM kiosk by selling or buying Bitcoin or other cryptos. The ATM wasn’t in collaboration with any financial institution or bank. Obviously, it didn’t do any good for anyone. The authorities were furious!
Indian Authorities had reported the Bitcoin ATM kiosk as completely illegal and was in violation of the ban. In their eyes Unocoin and it’s founders had set up the kiosk without the permission of the concerned authorities.
Harish BV, was brought in-front of Additional Chief Metropolitan Magistrate’s court. A 7 days police custody was ordered which showed that the Indian authorities are pretty serious about the ban and its violation.
The Word War
The Indian authorities and police strictly warned the public to not invest in any crypto because it’s illegal to do that in India. Whoever defies the law will face the consequence. The public wasn’t happy to hear that at all especially the crypto-lovers. The Indian authorities have denied the crypto-fans their right to use Bitcoin of course everyone has been furious.
Sathvik Viswanath partner of Harish BV, was confident that the business model of Unocoin is completely legal and which is why it is not illegal to sell or buy Bitcoin in India. He was persistent about the fact that his company had received bad publicity just after the Indian Finance Minister gave his statement on crypto’s in February.
The Big Loophole
The Finance Ministers stated that cryptocurrency was not “legal tender” in India. He didn’t say “illegal tender.” It simply means the investor bears the risk of the investment and there is no regulation for the industry.
The Bad Media
Unocoin Exchange clearly stated that the Bitcoin ATM didn’t do as well as they had expected. The local media discouraged it and portrayed it under bad light.
All the India crypto-enthusiasts have their hearts shattered because of the decisions of the authorities. They believe that the Indian Government lacks in knowledge when it comes to the blockchain technology and cryptocurrency. The Indian Government is known to related crypto to ponzi schemes and frauds.