Unicoin co-founder arrested for violating RBI norms on cryptocurrencies

The Co-founder of Unicoin, engaged in banned cryptocurrency exchange, has been arrested, days after he launched a Bitcoin ATM kiosk at a mall here in violation of RBI norms, police said Wednesday.

37-year old Harish B V 37, hailing from Tumakuru in Karnataka, was arrested Tuesday and two laptops, a mobile phone, a device for cryptocurrencies and Rs 1.79 lakh cash were seized among others from him, they said.

Harish, who had set up his firm Uncoin Technologies Private Limited to undertake business in virtual currency, had inaugurated the ATM kiosk in a city mall last week without permission from the competent authorities, police said. Police, who took the action on their own, produced him before the first additional chief metropolitan magistrate court, which remanded him in police custody for further questioning.

Police asked people not to get lured by the claims of making quick bucks through illegal cryptocurrency.

RBI had told the Supreme Court in July that allowing dealings in cryptocurrencies like Bitcoins would encourage illegal transactions and it has already issued a circular prohibiting the use of these virtual currencies.