Leading technology lobbying groups such as NASSCOM are asking the Reserve Bank of India (RBI) to reconsider its decision to exclude cryptocurrencies from its proposed regulatory sandbox. In the proposed framework which was released last month, RBI included the testing of blockchain technology-related products but left cryptocurrency businesses out of the list. The regulatory sandbox refers to a controlled testing environment for businesses subject to certain regulatory relaxations.
According to the report published by Economic Times, NASSCOM said that the regulators in countries such as the UK allow such innovations in their regulatory sandbox. The inclusion of cryptocurrencies in the regulatory sandbox will help India’s central bank understand the risks associated with cryptocurrencies.
Since crypto coins 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 to Economic Times
Even the Payments Council of India and some other tech startups have called for a more open framework. It is good to see the leading lobbying groups weighing in on the subject. RBI’s draconian banking ban has led to the shutdown of prominent cryptocurrency exchanges such as Zebpay, Coinome and Coindelta.