India excludes cryptocurrencies from fintech sandbox framework

19 Apr, 2019
by Alberto Arnaldo
Regulation
India excludes cryptocurrencies from fintech sandbox framework

Bad news from cryptocurrency enthusiasts from the second most populated country in the world, according to the latest report from the Reserve Bank of India (RBI).

The document, available online since yesterday, details the way in which the regulatory sandbox will be applied to the local fintech sector under the watch of the RBI, with the goal to “increase efficiency, manage risks and create new opportunities for consumers”.

What appears to be a move set to increase flexibility and dynamism in the sector, the condition 6.3 of the document is a clear setback to one of the areas which is showing some of the greatest developments when it comes to innovation. 

Sandbox testing will thus exclude cryptocurrency services, including trading, investing and ICO´s. However, a dash of hope remains in the regulation, as it appears to leave a backdoor open for crypto entrepreneurs in case “the applicants can show that either a different technology is being gainfully applied or the same technology is being applied in a more efficient and effective manner”.

The latest references to cryptocurrencies in Indian regulation have garnered the authorities of the country the reputation of being one of the toughest governments on their positions towards the space, as crypto Twitter has been noting as of late:

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