In a newly released document from the Reserve Bank of India (RBI), the country’s central bank, officials state that cryptocurrencies are excluded from exploration. The document, “Draft Enabling Framework for Regulatory Sandbox,” outlines which technologies may be tested, eliminating crypto assets and initial coin offerings.
In the document, the RBI has compiled a list of products/services/technologies that it calls “negative” and stresses the importance of protecting India’s legacy options.
- Credit registry
- Credit information
- Crypto currency/Crypto assets services
- Trading/investing/settling in crypto assets
- Initial Coin Offerings, etc.
- Chain marketing services
- Any product/services which have been banned by the regulators/Government of India
“The entities may not be suitable for RS (regulatory sandbox) if the proposed financial service is similar to those that are already being offered in India unless 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 Indian government does not recognize cryptocurrencies as legal tender. Last year the Reserve Bank of India prohibited banks from servicing clients engaged in crypto-related activities. The move effectively crippled the country’s blockchain-based businesses, causing Zebpay, India’s number one cryptocurrency exchange, to shutter its local operations and move to Malta.
Zebpay🚫in Sept ’18
Coindelta🚫 in April ’19
Now Unocoin fired 85% staff due to lack of funding.
Our crypto startups are dying.
But Crypto will survive. It doesn’t need India. India NEEDS Crypto to get billions in investment, innovate & reduce brain drain.#IndiaWantsCrypto
— Indian CryptoGirl ⚡ (@DesiCryptoHodlr) April 17, 2019