Unocoin is one of the major players in the Indian cryptocurrenc marketplace. The company has announced the launched of their first crypto ATMs. Unocoin’s CEO informed the press that they plan to install 30 of their crypto ATMs in 3 major cities. “These ATMs help people to cash in and cash out which was not possible before.” This statement refers to the crypto banking ban imposed by the Reserve Bank of India.
30 Crypto ATMs in 3 Cities
It all started with a social media post. Somebody spotted one the ATMs and took it upon himself to let the world know by posting a picture of it on social media. The company hadn’t even released a statement till then. And the picture has been doing the rounds in the media ever since. This was followed by the company officially announcing its plans. All Unocoin customers can use the crypto ATMs to deposit and withdraw INR. “Users are subject to some limits on deposits and withdrawals per transaction and per day subject to cash handling restrictions in India,” the exchange clarified.
The minimum amount for deposits and withdrawals is set at 1,000 rupees which is pretty reasonable. But all transactions can take place only in the multiples of 500 Rs. Any user can deposit cash into the machine and buy any of the cryptocurrencies available on Unocoin or Unodax. This now allows users to buy crypto assets whereas it was impossible before due to the RBIs crypto ban.
Solution to RBI Crypto Banking Ban
The Reserve Bank of India, which is India’s premiere banking organization had banned all financial institutions from providing services to any crypto business. The ban took effect from July and every crypto exchange in India suddenly lost its ability to convert digital assets into fiat currency and vice versa. This in return drove them out of business including Zebpay, which was India’s largest crypto exchange. Zebpay has since chosen to close down its operations after being unable to find a workaround to the Indian crypto ban. Various companies have been trying to find alternative mechanisms for currency conversions. And it looks like Unocoin might have finally discovered a workaround.
Vishwanath clarified that “The ATMs deployed by us do not need any banking partnerships. These are stand-alone machines that can accept and dispense cash. These ATMs help people to cash in and cash out which was not possible before due to RBI restriction on banks to not provide bank accounts. The gap is now completely filled by these ATMs except that physical access is required to deposit and withdraw money.”
How to Deposit and Withdraw INR Using Unocoin ATMs
Unocoin in it’s announcement has explained how users can use the ATMs. To deposit cash, a user must enter his user ID followed by an OTP received on his registered mobile number. To withdraw INR, “users have to make a request by visiting Unocoin.com or through Unocoin mobile app where he would specify [the] desired amount for withdrawal.” A 12-digit reference number from Unocoin will then be sent to the user to enter into the ATM, along with the OTP.
How will these crypto ATMs be implemented is still a mystery. But it definitely looks promising. Unocoin seems to be the only company to have found a workaround after the crypto ban.