CHENNAI: Technology industry lobby groups and founders of startups have asked India’s banking regulator to include cryptocurrency and crypto assets in its proposed regulatory sandbox framework for the fintech industry.
The Reserve Bank of India’s ‘Draft Enabling Framework for Regulatory Sandbox’, put out on April 18, had excluded cryptocurrency, initial coin offerings, credit registry and other related sectors. The regulator had invited comments from stakeholders on the guidelines by May 8.
Distributed ledger, the technology on which cryptocurrency and blockchain is based, is considered the future of finance, but applications under blockchain technologies have been included for testing under the proposed framework
“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,” said IT industry trade body Nasscom.
“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 said regulators in countries such as the UK permit such innovations in their regulatory sandbox, arguing that by including them the RBI could develop a better understanding of the risks.