RBI’s New Project Named Fintech Sandbox Denies Access to Crypto Startups

India’s central bank set up a fintech sandbox. Even though it distinctly does not allow any digital currency related undertakings, it may include corporate blockchain companies, tools, and startups. RBI’s New Project Named Fintech Sandbox Denies Access to Crypto Startups.

Three years after The Reserve Bank of India (RBI) first formed a team to look into fintech solutions, it finally released its draft framework for a regulatory sandbox last Thursday.

The draft states:
“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.”

The document positions it’s view that while still encouraging innovation. Operating a sandbox will assist regulators such as the RBI to better grasp new technologies.

RBI’s New Project Named Fintech Sandbox Denies Access to Crypto Startups. Applications under blockchain advancements are recorded as a type of innovation that may fall inside the sandbox’s parameters, the draft says, as do applications identified with smart contracts.

The document adamantly maintains that the sandbox will not engage in any crypto-related initiatives, such as the following:

  • cryptocurrency or crypto asset services
  • crypto trading, investing or settling
  • or initial coin offerings,
  • a few more traditional financial services

The national bank is searching for ventures including retail installments, cash exchange administrations, computerized digital identity. Also, mobile payments and money related to inclusion.

RBI has had a condemning stance towards digital currency ventures for quite some time now. It began to prohibit Indian banks from engaging in any business with new crypto businesses a year ago. This is after issuing various admonitions to do so.

Petitions have been filed by local startups contesting the ban, which the Supreme Court of India is currently reviewing.

In any case, RBI is apparently progressively open to blockchain usage, and allegedly, as of August 2018, set up a division devoted to looking into administrative structures for blockchain last August.

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