October 16, 2018, marked a significant moment for cryptocurrency adoption in South Asia as India’s first-ever Bitcoin ATM was installed at Kempfort Mall in Bengaluru. The machine, operated by cryptocurrency exchange Unocoin, offered customers the ability to deposit and withdraw Indian rupees for Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin — all despite the Reserve Bank of India’s ongoing crackdown on digital assets.
TL;DR
- India’s first cryptocurrency ATM installed by Unocoin at Bengaluru’s Kempfort Mall
- The ATM offered Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin transactions
- Unocoin claimed the ATM legally bypassed RBI banking restrictions since it operated independently of the banking system
- Ethereum developers were actively investigating the upcoming Constantinople hard fork upgrade code
- Huobi announced plans to list four US Dollar-pegged stablecoins
Unocoin’s ATM Gambit
The ATM installation was the brainchild of Unocoin Technologies, one of India’s earliest cryptocurrency exchanges, founded in 2013. The machine was designed exclusively for Unocoin and Unodax customers, allowing them to deposit or withdraw Indian currency. Users could then use those funds to purchase cryptocurrencies through Unocoin’s website or mobile application.
What made the ATM particularly clever was its legal positioning. Unocoin argued that since the ATM operated independently of India’s banking system, it was not subject to the Reserve Bank of India’s April 2018 circular that had prohibited banks from dealing with cryptocurrency businesses. The ATM functioned as a cash-handling terminal, not a banking service — a distinction that Unocoin believed would keep it on the right side of the law.
The machine supported five major cryptocurrencies: Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin. At the time, Bitcoin was trading at approximately $6,596, while Ethereum hovered around $210, according to CoinMarketCap historical data.
Ethereum’s Constantinople Upgrade Takes Shape
While India was pushing the boundaries of crypto accessibility, Ethereum developers were hard at work on the network’s next major upgrade. On October 16, 2018, core developers were actively investigating the Constantinople hard fork code — a critical milestone in Ethereum’s multi-phase transition roadmap.
Constantinople was designed to implement several important improvements to the Ethereum network, including changes to the block reward structure and gas optimizations. The upgrade represented the second part of the Metropolis phase, following the Byzantium fork that had taken place a year earlier in October 2017.
Developers were particularly focused on ensuring the upgrade’s stability and security, reviewing the code for potential vulnerabilities before setting a firm block height for activation. The careful, deliberate approach reflected the high stakes involved — any misstep in a hard fork could potentially split the network or cause unintended consequences for the millions of dollars in decentralized applications running on Ethereum.
Huobi Embraces Stablecoins
Major cryptocurrency exchange Huobi also made news on October 16 by announcing it would list four US Dollar-pegged cryptocurrencies during the week. The move signaled growing demand for stablecoins as traders sought refuge from the extreme volatility that had characterized much of 2018’s crypto market.
Stablecoins were becoming an increasingly important part of the crypto ecosystem, providing a way for traders to move in and out of positions without converting back to fiat currency. Huobi’s decision to list multiple stablecoins simultaneously reflected the competitive dynamics of the stablecoin market, which was still in its early stages of development.
Litecoin’s Charlie Lee on Mass Adoption
Litecoin founder Charlie Lee appeared in a new interview with CNBC’s Crypto Trader on October 16, discussing the barriers preventing widespread cryptocurrency adoption. Lee, who had famously sold or donated all of his Litecoin holdings in December 2017 to avoid conflicts of interest, focused on the practical challenges that needed to be overcome before crypto could achieve mainstream usage.
The discussion touched on scalability, user experience, and the need for more merchant acceptance — themes that would continue to dominate crypto industry conversations for years to come. Litecoin was trading at approximately $54 at the time, down significantly from its all-time highs near $370 reached in December 2017.
Why This Matters
The events of October 16, 2018, illustrated the global and multifaceted nature of cryptocurrency development. In India, entrepreneurs were finding creative ways to expand access despite regulatory headwinds — though Unocoin’s ATM would be seized by police just a week later, demonstrating the risks of moving faster than regulators were comfortable with. On the Ethereum side, the careful work being done on Constantinople represented the methodical, long-term infrastructure building that ultimately makes networks more valuable. And the growing stablecoin ecosystem signaled that the crypto industry was maturing, developing the tools and instruments needed for more sophisticated financial activity.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
a physical ATM in a mall in Bengaluru to bypass RBI banking restrictions. the absolute chad energy of Unocoin
offering 5 coins including BCH and LTC at an ATM in 2018 was actually pretty ambitious. most ATMs today still only do BTC
xxnodex is right, most ATMs today are BTC only. offering 5 coins at a mall ATM in 2018 was genuinely ahead of its time
chad energy until the cofounders got arrested at their office the same week. the machine lasted maybe 10 days before regulators seized it
karnataka_crypto the machine lasted what, 10 days? my friend went to try it and it was already gone. unocoin got wrecked for trying something bold
karnataka_crypto the machine at Kempfort Mall was dismantled so fast. Unocoin had the right idea but zero political cover in 2018
I remember this. The ATM was seized within weeks and Unocoin founders were briefly arrested. Bold move but the timing was terrible given the regulatory climate.
the founders were charged under outdated RBI circulars that got overturned in 2020 anyway. they were ahead of their time and paid the price for it
akash_d the RBI circular was overturned but the damage was done. india lost 2 years of crypto builders to singapore and dubai
Neha D. two years of lost builders is right. WazirX moved to Binance and the entire indian dev scene shifted to Singapore and Dubai
the RBI ban was struck down by the supreme court in march 2020. unocoin founders spent 2 years fighting charges from a circular that got ruled unconstitutional. india crypto tax is the new ban honestly
Anjali R. RBI ban struck down in 2020 but those founders went through 2 years of legal hell for nothing. india crypto tax at 30 percent is just ban 2.0
huobi listing 4 USD stablecoins at the same time india got its first ATM. the stablecoin wars were just as wild as the exchange wars back then
Harshad and his team at Unocoin were pioneers but the RBI ban destroyed them. supreme court reversed it in 2020 but by then the opportunity was gone
Bengaluru in 2018 was the center of indian crypto. unocoin, wazirx, zebpay all within a few km. then RBI killed the momentum for 2 years