- The Reserve Bank of India announced the exclusion of cryptocurrency and other related sectors.
- Nasscom argued that integrating such innovations can help RBI develop a better understanding of the risks.
Technology industries and startups want RBI to integrate cryptocurrency and crypto assets in its proposed regulatory sandbox framework for the fintech industry. On April 18, The Reserve Bank of India’s ‘Draft Enabling Framework for Regulatory Sandbox’, announced the exclusion of cryptocurrency, initial coin offerings, credit registry, and other related sectors.
Cryptocurrency and blockchain-based distributed ledger technology are regarded as the future of finance. However, applications that work under blockchain technology have been included for testing under the proposed framework. Nasscom said:
“Since cryptocoins and tokens are an important component of the blockchain technology, the draft regulations appear to exclude testing of smart contracts and other approved blockchain technology under the sandbox.”
Payments Council of India (PCI) has also shown the desire for a more open structure. Naveen Surya, chairman emeritus of PCI:
“The boundaries can’t be defined right away. The discussion has been on how an open framework can be created instead of a subset of existing laws because then we wouldn’t be achieving the innovation objective. Ideally, they shouldn’t have such large exclusions.”
Incrypt Blockchain has submitted a report on a blockchain-specific sandbox containing specifics on policies and procedures.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.