An Indian minister reported that a state government is working to protect businesses that operate without a regulatory framework in India. They include cryptocurrency exchanges and encrypted traders. The move follows the arrests of the founders of a cryptic exchange after trying to create an ATM-type kiosk in a local mall.
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Authority for innovation
<img class = "size-medium wp-image-250297 alignright” title=”Indian state that works to help cryptocurrency businesses grow” src=”https://news.bitcoin.com/wp-content/uploads/2018/11/indian-flag1-300×189.png” alt=”Indian state working to help cryptocurrency companies grow "width =" 300 "height =" 189 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/11/indian-flag1- 300×189.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/11/indian-flag1-768×485.png 768w, https://news.bitcoin.com/wp-content/uploads/ 2018/11 / indian-flag1-1024×646.png 1024w, https://news.bitcoin.com/wp-content/uploads/2018/11/indian-flag1-696×439.png 696w, https: //news.bitcoin. com / wp- content / upload / 2018/11 / indian-flag1-665×420.png 665w, https://news.bitcoin.com/wp-content/uploads/2018/11/indian-flag1.png 1060w "sizes = "(max width: 300px) 100vw, 300px”/>The Minister of India for social welfare Priyank Kharge has revealed that the state government of Karnataka "is working on the creation of an" Authority for innovation "with the goal" of protecting businesses large-scale technology companies operating in gray regulatory areas, "reported the Economic Times.
"Technologies are changing rapidly and our policies are just trying to recover," he told the news on Monday. "Instead of banning a popular enterprise due to the fact that the regulations do not allow it, the Authority for Innovation would intervene to present a rapid political framework." The minister elaborated:
For example, bitcoins are exchanged in restaurants in Bengaluru and we will need to interact with the government and obtain regulatory clarity rather than banning those technologies for which the regulations are not yet in place.
Confusion on the Unocoin kiosk
Asserting his opinion on the need for policies conducive to innovation, Kharge referred to the recent arrests of Unocoin founders, the publication transmitted.
<img class = "size-medium wp-image-250302 alignright” title=”Indian state that works to help cryptocurrency businesses grow” src=”https://news.bitcoin.com/wp-content/uploads/2018/11/unocoin-kiosk-300×162.png” alt=”Indian state working to help cryptocurrency businesses grow "width =" 300 "height =" 162 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/11/unocoin-kiosk- 300×162.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/11/unocoin-kiosk-768×415.png 768w, https://news.bitcoin.com/wp-content/uploads/ 2018/11 / unocoin-kiosk-1024×553.png 1024w, https://news.bitcoin.com/wp-content/uploads/2018/11/unocoin-kiosk-696×376.png 696w, https: //news.bitcoin. com / wp- content / upload / 2018/11 / unocoin-kiosk-1392×751.png 1392w, https://news.bitcoin.com/wp-content/uploads/2018/11/unocoin-kiosk-1068×577.png 1068w, https: // news.bitcoin.com/wp-content/uploads/2018/11/unocoin-kiosk-778×420.png 778w "sizes =" (maximum width: 300px) 100vw, 300px”/>Unocoin, one of the largest cryptocurrency exchanges in India, is based in Bengaluru, the capital of Karnataka. Following a ban on bank encryption by the central bank of the country, the Reserve Bank of India (RBI), the company put a car in a local mall in October to manage fiat deposits and withdrawals for its customers. This machine was originally marketed as an Unocoin ATM, but soon the company renamed it to a kiosk.
<img class = "size-medium wp-image-250306 alignright” title=”Indian state that works to help cryptocurrency businesses grow” src=”https://news.bitcoin.com/wp-content/uploads/2018/11/rbi-bldg-300×227.png” alt=”Indian state working to help cryptocurrency companies grow "width =" 300 "height =" 227 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/11/rbi-bldg- 300×227.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/11/rbi-bldg-768×582.png 768w, https://news.bitcoin.com/wp-content/uploads/ 2018/11 / rbi-bldg-1024×776.png 1024w, https://news.bitcoin.com/wp-content/uploads/2018/11/rbi-bldg-80×60.png 80w, https: //news.bitcoin. com / wp- content / upload / 2018/11 / rbi-bldg-160×120.png 160w, https://news.bitcoin.com/wp-content/uploads/2018/11/rbi-bldg-696×527.png 696w, https: // news.bitcoin.com/wp-content/uploads/2018/11/rbi-bldg-1068×809.png 1068w, https://news.bitcoin.com/wp-content/uploads/2018/11/rbi -bldg-554×420 .png 554w, https://news.bitcoin.com/wp-content/uploads/2018/11/rbi-bldg.png 1205w "sizes =" (maximum width: 300px) 100vw, 300px”/>The Bengaluru cyber crime department immediately seized the car and arrested the company's founders, CFO Harish BV and CEO Sathvik Vishwanath. "The detention was based on the accusation that we as a company did not have the necessary approvals to create an ATM," Unocoin said in a statement on Tuesday.
According to the exchange, the police took the position of "The ATM kiosk installed by Unocoin at Kemp Fort Mall has not taken any permission from the state government and is dealing with cryptoasset outside the mandate of the law." The company claimed:
Since it is a private kiosk, it is not necessary to obtain licenses or approvals of any kind from the authorities. Unocoin's Kiosk machines do not fit the RBI definition of ATM that connects to the banking network.
The police have challenged the legality of the cryptocurrency
<img class = "size-medium wp-image-250307 alignright” title=”Indian state that works to help cryptocurrency businesses grow” src=”https://news.bitcoin.com/wp-content/uploads/2018/11/cryptos-300×203.png” alt=”Indian state that works to help cryptocurrency businesses grow "width =" 300 "height =" 203 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/11/cryptos-300×203. png 300w, https: //news.bitcoin.com/wp-content/uploads/2018/11/cryptos-768×520.png 768w, https://news.bitcoin.com/wp-content/uploads/2018/11/ Cryptos-1024×693. png 1024w, https://news.bitcoin.com/wp-content/uploads/2018/11/cryptos-696×471.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/11/ cryptos-1068×723.png 1068w, https://news.bitcoin.com/wp-content/uploads/2018/11/cryptos-621×420.png 621w, https://news.bitcoin.com/wp-content/uploads/ 2018/11 / cryptos.png 1083w "sizes =" (maximum width: 300px) 100vw, 300px”/>Unocoin clarified that "The situation is finally under control once the police authorities have understood our initiative in its original intent". The exchange added that the authorities were also "made aware that they had not violated any law in the creation of the kiosk and therefore the whole fiasco reached a rapid conclusion, although some formal legal proceedings".
As for the kiosk, Vishwanath told news.Bitcoin.com that so far the police "understood" that it is not an ATM. However, he noted:
Since they have initiated a legal proceeding, it will take some time and a sweet course before the problem is solved.
Prior to his arrest, the Times of India sued Vishwanath by explaining that cryptocurrency is not illegal in India. He stressed that the statement of the country's finance minister "was clear: the cryptocurrencies are not legal tender in India.It did not say they are not legal in India.There is a huge difference."
The CEO stated at news.Bitcoin.com:
Their [police’s] the main concern concerns the legality of cryptographic activities itself, and it is difficult to make the police understand the normative position of our country, since the subject is quite new to them.
What do you think of this Indian state government that tries to help the crypt industry? Let us know in the comments section below.
Images kindly granted by Shutterstock and Unocoin.
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