Indian central bank, The Reserve Bank of India (RBI) formed up a fintech sandbox that may include blockchain companies and startups, but no entry to cryptocurrency related projects.
On Thursday, The Reserve Bank of India published its draft framework after almost three years for a regulatory sandbox. It was first formed a working group to look into fintech solutions in July 2016.
As per the draft published by RBI,
“The proposed financial service to be launched under the RS should include new or emerging technology, or use of existing technology in an innovative way and should address a problem, or bring benefits to consumers,”
Sandboxes usually use by regulators globally, including United Kingdom Financial Conduct Authority where fintech startups can showcase innovations. This kind of fintech sandbox helps regulators such as the Reserve Bank of India to understand new technologies in a better way.
The Indian Regulatory Sandbox will not entertain any crypto related projects, companies, startups. This include cryptocurrency or crypto asset services like crypto trading, investing or settling in crypto assets or any initial coin offerings ICO's, according to the document.
The Indian central bank is open to blockchain technology and its projects and reportedly launched a unit dedicated to researching regulatory frameworks for blockchain last year in August.
Disclaimer & Suggestion : Please always do your due diligence before investing in any cryptocurrency or project. This should not be treated as financial advice.
