India central bank, RBI urged to allow smart contract testing within the regulatory sandbox

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  • India would allow the testing of blockchain products apart from cryptocurrencies.
  • The India cryptocurrency industry has been a volatile ground since the ban was effected in April 2018.

Groups championing for the listing of the crypto ban in India have urged the Reserve Bank of India (RBI) to rethink the crypto-related products within the regulatory sandbox. This comes after a report was published by The Economic Times. According to the proposed framework by the RBI formulated the last one, India would allow the testing of blockchain products apart from cryptocurrencies, crypto exchange platforms as well as Initial Coin Offerings (ICOs).

According to Nasscom, a trade union for the IT-based industries in India, RBI will be at a better position to understands the complexities of the crypto universe if it were aware of the risks that come along with it. The organization said in a comment:

“Since cryptocoins and tokens are an important component of the blockchain technology, the draft regulations appear to exclude testing of smart contracts and other approved blockchain technology under the sandbox.”

At the same time, the Payments Council of India warned that innovation in the industry was going to be an uphill task if there were such enormous exclusions.

The India cryptocurrency industry has been a volatile ground since the ban was effected in April 2018. It has led to several exchanges closing doors while the remaining companies having a difficult time operating.

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