First Cryptocurrency Kiosk in India installed by Unicoin
Cryptocurrency exchange Unocoin has installed the first cryptocurrency kiosk in India to enable Indians to buy and sell cryptocurrencies including bitcoins. The kiosk has been unveiled in Kemp Fort Mall in Bengaluru.
M/s Unocoin Technologies Pvt Ltd is a leading bitcoin company in India. The company supported Indians in buying, selling, storing, using and accepting bitcoin. But, everything changed in February 2018 when Finance Minister clarified that bitcoin is not a legal tender in India. Further, RBI prevented banks from associating with entities promoting cryptocurrencies. The website of Unocoin also states that “As per orders from RBI, bank INR withdrawals and INR Deposits have temporarily been disabled. Once an alternative method of funding is identified and deployed, we will resume the deposit and withdrawal services.”
However, the challenges and hurdles have not prevented the company from launching the first cryptocurrency kiosk in the country. The machine supplied by ATM maker NCR resembles a Bank ATM, but without the card slot. This is because banks are banned from supporting cryptocurrency ecosystem. Though the machine looks like an ATM, the company prefers the term kiosk.
The cryptocurrency kiosk, the first-of-its-kind in the country, has both a trading and exchange platform. The operations are expected to start soon and verified customers of Unocoin will be allowed to use the device.
As per information provided by Unocoin, customers of Unocoin and its unit Unodax will be able to buy or sell cryptocurrencies. According to the news reports, the company will allow transactions of up to 10 bitcoins a day. However, all transactions will have to be made in Indian rupees only, after which they can be exchanged into a currency of the consumer's choice. Unocoin deals with ethereum cryptocurrency whereas unodax deals with other 30 cryptocurrencies which include ripple and litecoin. It is also stated that a customer can deposit or withdraw cash between Rupees 1,000 and 10,000 per transactions per day in denominations of Rupees 500. The balance in the account can be used to buy crypto currencies. It is to be noted that a bitcoin quotes at Rs. 5.27 lakhs for purchase and at Rs. 4.34 L for sale as on 21 October, 2018 as per the details provided in the website of Unocoin. .
Unocoin follows an elaborate procedure for registration of customers and permitting deposits and withdrawals. To transact in the cryptocurrency kiosk, customers should register through their mobile number and enter a password. During verification process, details such as PAN number, phone number, address and bank details will have to be provided by the customer. Withdrawals require a prior request during which 12-digit OTP will be provided using which the transaction can be authorized.
The restrictions imposed by the finance ministry and RBI are still in place. The company officials state that though cryptocurrencies are not treated as legal tender in India, they are not considered as illegal. Countries like Japan treat cryptocurrencies as legal tenders. It is expected that the customers who buy crypto currency can keep it with them for appreciation of value or for transacting on websites accepting such currencies or during foreign trips to countries where the currencies are accepted.
