In line with a recent news reported by ‘The Economics Times’, lobbying groups are urging the Central Bank of India ‘RBI’ to permit cryptocurrency associated products to be tested in its restrictive sandbox.
The RBI’ suggested framework, ‘disclosed‘ last month, would permit ‘blockchain‘ technology to be tested on a small number of users – but cryptocurrencies, exchanges and ICO’s [Initial Coin Offerings] are excluded.
Nasscom, a trade association of Indian IT firms, is asking for the regulator to rethink, and argues the Reserve Bank Of India would clearly perceive the risks related to ‘cryptocurrencies‘ by including it within the sandbox.
Explaining further, the organization added:
“Since crypto assets and tokens are a vital part of the blockchain technology, the draft rules seem to exclude testing of smart contracts and alternative approved blockchain technology underneath the sandbox.”
Moreover, the Payments Council of India has warned innovation would be tough to achieve if the sandbox’s framework has such massive exclusions.
Sandboxes are utilized by regulators around the globe, together with the U.K’s Financial Conduct Authority. Some startups are concerned that India’ uncompromising approach can mean innovative products can’t be tested in their home country, even of they’re permissible within international markets.
India’ recent relationship with cryptocurrencies has been fraught at time. Just last month, a ‘report‘ urged that the world’s 2nd most populous settled nation was ‘considering‘ a complete ban on digital assets.
Earlier in last month, renowned Indian cryptocurrency exchange named ‘Coinome’ announced complete closure of its operations citing regulatory difficulties.