Just a week after the installation of India’s first ever cryptocurrency ATM by Unocoin, RBI put it into a dire situation. Last Sunday, The Cyber Crime Police in Bengaluru seized the ATM and arrested company’s Co-Founder, Harish BN for circumventing RBI regulations against curbing cryptocurrency related activities in India.

The Cyber Crime Department has stated that the cryptocurrency ATM clearly contradicts RBI’s rule of ‘Prohibition on Dealing in Virtual Currencies’ in India. Hence, the Cyber Crime officials termed it as an act outside the pursuit of law.

The police have also arrested the company’s co-founder, Harish BN and have seized two laptops, one mobile phone, three credit cards, five debit cards and cash worth of Rs. 1.79 Lakh along with a cryptocurrency device.

However, in its statement, Unocoin has stated that it was trying to impose newer mechanisms and solutions to reduce the present cryptocurrency hurdles drafted by RBI. According to the company, the ATM was for easy deposit and withdrawal of bitcoins without promoting any selling or buying activity. Unocoin had also prepared for installing two such ATMs at Mumbai and Delhi.

The ATM was not yet operational and was also moved from Bengaluru’s Kempfort Mall to another location after several reports emerged in the media both criticizing and hailing the installation of the ATM.