India's first Bitcoin ATM is here! Check how this cryptocurrency kiosk will work

Unocoin has launched country’s first Bitcoin ATM in Bengaluru which allows customers to deposit and withdraw rupee from the kiosk.

The RBI, earlier this year, announced that all financial institutions associated with it are not permitted to deal with cryptocurrencies. (Image: Unocoin website)

New Delhi: Despite crackdown by the government and Reserve Bank of India (RBI) on trading of cryptocurrency in India, virtual currency exchange Unocoin has launched country’s first Bitcoin ATM in Bengaluru which allows customers to deposit and withdraw rupee from the kiosk. The ATM has been installed at Kemp Fort Mall in Bengaluru. The first-of-its-kind ATM dodges RBI’s regulation against transactions of bitcoin in the country. The RBI, earlier this year, announced that all financial institutions associated with it are not permitted to deal with cryptocurrencies. ATMs are a part of any financial institution with RBI. However, speaking about RBI’s notification and the restriction of dealing in virtual currency, the company says that it is merely attempting to accommodate ‘newer mechanisms and solutions to reduce the hurdle facing (regulatory) hurdles by the present central governments stand.’ The unique ATM is accessible only to the registered customers of Unocoin. As per information provided by the company, customers will be able to buy or sell up to 10 Bitcoins a day. The company also made it clear that all transactions have to be made in India rupee only and thereafter the customers can exchange it into the currency that want. According to the company, customers would need to register through their mobile number and enter a password. Going further, the initial verification will take place which includes customers’ details such as PAN number, phone number, address and bank details. Unocoin also uses an elaborate procedure for both deposits and withdrawals, with the withdrawals requiring a prior request and a 12-digit OTP. The company also said that it is planning to launch similar ATMs in Delhi and Mumbai. The company also mentioned that the installed ATM will not accept debit or credit cards as banks cannot be involved in bitcoin transactions. Also it said that the minimum amount for deposit and withdrawal is Rs 1,000 and only in the multiples of Rs 500 bank notes. “To deposit INR into his Unocoin/Unodax account, a user would reach to an Kiosk and enter his User ID and the OTP that he just received as SMS on his registered mobile number. The user would then confirm his account details and deposit the funds into the Kiosk machine. Instantly his Unocoin account will be updated with the deposited funds that he can use on Unocoin to buy BTC or ETH, or he can use it on Unodax to place BID orders on 30 various crypto assets,” the company statement said. Meanwhile the government has said that cryptocurrencies are not a legal tender in India. Cryptocurrencies became popular in 2017 following a remarkable surge of Bitcoin from $5,000 to $20,000 in a span of around 60 days. This also led to many governments to act and declare it either illegal or legal. However, the digital currency could not sustain its high value and felt down sharply too over the past one year. As of today, Bitcoin is trading at $6,408, as per cryptocurrency exchanges.