Unocoin Violated RBI’s White Label ATM Policy?
Bengaluru: With the Central bank cracking down on all crypto related activities within its border, a prominent digital asset exchange, Unocoin has gone ahead to install an ATM at Kemp Fort Mall in Bengaluru. However, the installation didn’t last long as Unocoin recently released a statement on Twitter that it will be removing the installed ATM.
Our Machine didn’t go well with few mainstream media reports who projected it under a negative light. The machine is still under final testing mode and it will be up and running in the upcoming week. The machine has been temporarily moved from its original place of installation.
— Unocoin (@Unocoin) 20 October 2018
“Our Machine didn’t go well with few mainstream media reports who projected it under a negative light. The machine is still under final testing mode, and it will be up and running in the upcoming week. The machine has been temporarily moved from its original place of installation.”
Unocoin Crypto ATM Reports in Media
Since the news of the Unocoin ATM installation broke, Coincrunch, another crypto media reported in a tweet, Unocoin’s ATM as mislabeling the ATM as Cryptocurrency ATM. We also mentioned the ATM is more or less an INR Kiosk rather than a crypto ATM based on the report.
Is ATM Removed Due to Negative Sentiments or Violation of RBI policy?
Based on the reports, our team did a research and found that any company other than a bank, if plans to install a fiat-based ATM, then it requires permission from RBI under the White Label ATM policy.
Though the Unocoin may have met the minimum requirements to set up an ATM such as an “Any nonbank entity which has a minimum net worth of Rs. 100 Cr. can apply for white label ATM”.
The RBI would not have granted permission to set up an ATM, which fulfill the Payment and settlement of INR to deal cryptocurrency.
As research we found out that Unocoin’s ATM is a direct violation of the Reserve Bank of India’s (RBI) White Label ATM policy. While we are also waiting for the update from the Unocoin team, that if it’s not a violation of RBI White label policy than under what section did they installed Fiat ATM?