India Shuns Bitcoin Legalization Again, Excludes Crypto Startups from Fintech Sandbox
By CCN.com: The Reserve Bank of India (RBI) has published its official document on a draft framework for fintech regulatory sandbox entitled “Draft Enabling Framework for Regulatory Sandbox.” The document explicitly excluded crypto assets like bitcoin, demonstrating a lack of intent to regulate the local crypto market.
“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 document read, listing crypto assets, crypto trading, and ICOs as excluded areas.
India’s central bank excludes the crypto sector from its sandbox | Source: RBI
The draft framework essentially eliminates crypto-related businesses and bitcoin exchanges from the fintech market, which the government of India has expressed its intent on supporting.
Will Bitcoin Legalization in India Ever Happen?
The current stance of India on bitcoin and crypto regulation is unexpected given that many major governments in Asia including the likes of Japan, South Korea, Singapore, Hong Kong, and others have taken the approach of regulating the crypto market.
The central bank of India has prohibited local banks from working with cryptocurrency exchanges, eliminating fiat-to-crypto trading in the local market.
The policy of the RBI has left the overwhelming majority of crypto businesses in India in disarray, most of the entities involved with crypto either shutting down their services or moving out of the crypto market of India.
