The Reserve Bank of India (RBI) has announced the terms of its regulatory sandbox in a report on April 18th. As per the terms of the regulatory framework, various applications of blockchain technology can be tested, with the notable exclusion of cryptocurrency-related projects.
Lobbyists frm India’s technology industry, led by the National Association of Software and Services Companies (NASSCOM), have made a case to India’s central bank, asking to include cryptocurrencies and related activities in the proposed regulatory sandbox framework for the financial technology (fintech) industry, according to a May 16th Bitcoinnews report.
Initial guidelines were issued in the form of the Draft Enabling Framework for Regulatory Sandbox by the RBI in April 2019. The draft framework neglected to include cryptocurrency, Initial Coin Offerings (ICOs), and other crypto-related activities.
The IT industry trade association issued a statement regarding the RBI move, saying:
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… the decision to keep cryptocurrencies, trading of cryptocurrencies and initial coin offerings out of the purview of the regulatory sandbox is still not clear.
NASSCOM pointed out that regulatory sandboxes serve as a great learning mechanism to scrutinize the technology and assess the possible risks, noting that sandboxes in other countries around the world, including the United Kingdom, allow crypto-related activities for testing purposes.
About Asia Blockchain Review
Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.
Follow Asia Blockchain Review on:
We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us