RBI Reveals Fintech Sandbox IMG Rules Leaves out Cryptocurrencies and ICO’s
According to a recent report, crypto businesses in India have been having a hard time since the Reserve Bank of India (RBI) has placed a ban on their operations. Although there is a high expectation from the Supreme Court of India, the RBI has not been cooperating with the court. The central bank has just tendered a draft document which consists of the “Enabling Framework for Regulatory Sandbox”. The write up only applies to Fintech companies, therefore not applicable to virtual currencies and ICO’s.
RBI Does Not Approve Testing Of Crypto Assets In Regulatory Sandbox
The new development on Fintech Regulation by the RBI is surprising as it had not shown any interest for some time now. However, the details of the publication were unexpected by the Crypto community as they were looking forward to solutions to the decline of crypto businesses across the country. Contents of the document did not include the trading of virtual currencies, ICO’s, and storage of digital currencies out of the scope of the Regulatory Sandbox.
The list of products and innovations under blockchain technologies includes Applications and Smart contracts and they are expected to be examined within the regulatory sandbox environment. According to specialists in the crypto industry, crypto tokens and coins are a crucial part of the blockchain tech as their absence will lead to difficulties in understanding how the smart contracts and other approved blockchain technologies will be put to test.