India's central bank issued a regulatory sandbox report to support blockchain innovation testing

On April 18th, the Reserve Bank of India (RBI) issued a report announcing its regulatory sandbox provisions. This includes testing various blockchain applications, while cryptocurrency related items are excluded.

Aged-2181887_960_720

(Source: Pixabay )

Regulators around the world, such as the UK Financial Conduct Authority, use sandboxes to help financial technology companies conduct innovative testing of a small number of consumers for a period of time.

Three years ago, the Bank of India began reviewing its framework to better respond to the “fast-growing” financial technology market dynamics. Now, the Bank of India has concluded that the public can try “block-innovative technologies” based on blockchain, which gives the Bank of India an opportunity to assess whether new regulations are needed to protect consumers.

The Reserve Bank of India said that financial technology companies and consumers will also benefit. Blockchain companies do not need expensive promotional expenses when testing product viability, and the public has therefore “reduced costs and improved access to financial services”.

Of course, the report acknowledges that “innovators may lose some flexibility and spend more time because of sandboxing procedures”. Moreover, completing these tests does not mean that no further regulatory approval is required.

The Reserve Bank of India details the list of “innovative technologies” for sandbox testing, including blockchain platforms, mobile payment and digital identity software, data analytics, artificial intelligence or machine learning applications. In addition, industries that meet the "Innovative Products and Services" criteria include retail payments, remittance services, digital understanding of your customer inspections, smart contracts and network security products.

At the same time, cryptocurrency, encrypted exchanges, and ICO are no longer within the sandbox test. In addition, products and services that have been banned by the Indian government or regulatory agencies are not eligible for application.

In April last year, the Reserve Bank of India stated that it would no longer provide services to individuals or businesses engaged in cryptocurrencies. Five months later, as one of the largest crypto exchanges in India, Zebpay announced that it would stop all transactions because the conditions were “extremely difficult”.

The Reserve Bank of India has been considering launching its own digital currency, but plans to postpone it at the beginning of the year. Now, Indian encryption regulation is increasingly uncertain. In February, the Supreme Court asked the Indian authorities to issue regulatory requirements within four weeks, otherwise they would face a court decision.

For the original terms, please see https://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=920#S1

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

From Caroline Ellison to Gary Wang The Fate of Bankman-Fried Hangs by a Thread, According to Bloomberg

Three ex-close friends and colleagues of FTX co-founder Sam Bankman-Fried have testified against him, possibly result...

Blockchain

Behind Alipay and WeChat Joint "Sniper" Coin: Competition in cryptocurrency stocks

Text | Mutual Chain Pulse · Liang Shan Hua Rong Zhao Changpeng and He Yi did not expect that the road to returni...

Market

Is CoinDesk selling at a loss with a valuation of $125 million after being in business for ten years?

On the occasion of its tenth anniversary and after being held by DCG Group for eight years, CoinDesk, the cryptocurre...

Blockchain

Alameda Engineer SBF stole my life savings

As an engineer at Alameda Research, my entire life savings were stolen by my former boss, Sam Bankman-Fried (known to...

Market

Semafor The US Department of Justice is considering fraud charges against Binance, but is concerned about a FTX-style run in the market.

Insiders say that federal prosecutors are concerned that if they were to prosecute Binance, it could lead to a run on...

Blockchain

The exchange is robbing the tokens, all of which are behind the interests.

Since 2019, with the launch of the first issue of the currency-raising (IEO), the “project-side tokens have be...