Regulations Cause Bitcoin Exchanges To Shut Down, Turning To ATMs

By Kapil Gauhar

With an aim to improve crypto-to-fiat liquidity in India in the middle of an ongoing banking ban, Indian exchanges are discovering ways which could function within the grey areas of law.

In the latest announcement, Unocoin revealed its plan to launch a Bitcoin ATM network throughout India. The Bengaluru-based crypto exchange already introduced one crypto trading kiosk in its hometown. It helped users to exchange, XRP, Bitcoin, Bitcoin Cash, Ethereum and Litecoin for cash, and vice-versa.

On the other hand, Unocoin is trying to work inside the legal system. The exchange has proved that it would lay down the current cash handling restriction in accordance with the guidelines issued by the central bank post demonetization.

Unocoin explained, “Users are subject to some limits on deposits and withdrawals per transaction and per day subject to cash handling restrictions in India. The minimum amount for deposits and withdrawals is 1,000 rupees (~$13.50) and must be in multiples of 500 rupees.”

Banking Relationships Terms

Unocoin illustrated that their ATM network would work as an independent project which doesn’t need banking partnerships like different ATMs. It will expel the project from the purview of RBI ban that bars regulated banking system to conduct businesses with crypto firms. All things considered, the trade would keep inserting money bills into the machine regularly, and customers will likewise be at the risk to dispense and withdraw their assets in INR only.

Given that users would need to use their enlisted Unocoin addresses for exchanging, in consistence with India’s KYC/AML laws, it is hazy if they would infringe upon the law or not. In the wake of RBI ban targeting only Bitcoin companies, an independent person exchanging Bitcoin for cash under a perceivable situation could in any case be somewhat more dangerous or riskier than exchanging p2p.