Indian police drive in the town of Bangalore has raided an ATM operated by local cryptocurrency exchange Unocoin just weeks following it was established up.

The Periods of India claimed in a news report on Wednesday that Harish BV, co-founder and main know-how officer of the Unocoin exchange, was arrested on Tuesday as he was running the ATM which was set up in a browsing shopping mall and uncovered on Oct. 14.

In accordance to the report, the Central Criminal offense Department of the local police seized the ATM, two laptops, a cellular, three credit cards, five debit cards, a passport and Indian rupees worthy of about $2,500.

Unocoin is a single of the many cryptocurrency exchanges in India that have survived a financial institution ban issued early this yr by the Reserve Financial institution of India (RBI), the country’s central banking authority.

As domestic financial institutions stopped giving money solutions to cryptocurrency exchanges, Unocoin launched the ATM that would enable traders to instantly deposit Indian rupees to their accounts with the exchange. The corporation claimed previous 7 days it was organizing to open up many more ATMs in Mumbai and Delhi.

Still, the police claimed Unocoin is not authorized to operate this form of ATM.

In another information report from Bangalore Mirror on Wednesday, Alok Kumar, a commissioner from the Bangalore town police was quoted as stating:

“They [Unocoin] did not have any license from RBI, Sebi [Securities and Exchange Board of India] or any other company to have out the bitcoin transaction. They were being running it without having getting any trade license from the BBMP [Bangalore government].”

On the other hand, Unocoin’s co-founder and CEO Sathvik Viswanath, denied this accusation, stating in the Periods of India report:

“The [Finance] Minister’s statement was crystal clear: cryptocurrencies are not lawful tender in India. He did not say ‘illegal tender’. There is a large big difference. It suggests you bear the hazard of your financial commitment and you will find no regulation for the business.”

Unocoin has not responded to a CoinDesk’s ask for for more remark on the issue.

Police auto image by way of Shutterstock

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