The Indian self-regulatory Fintech Association for Consumer Empowerment (FACE), approved by the Reserve Bank of India (RBI), will exclude companies dealing with digital assets from its membership.

FACE CEO Sugandh Saxena said the organization has contacted 1,000 companies on this issue as it is required to have only members from the regulated space. New fintech companies providing cryptocurrency services will not be able to join the organization. FACE estimates that more than 900 fintech firms are involved in cryptoassets.

“Confidentiality and security of customer data, operational transparency, and participant compliance are of paramount importance to us. We want to give people assurances that companies within FACE do not violate laws,” Saxena commented.

FACE’s decision was made against the backdrop of concerns expressed by the Central Bank of India about cryptocurrencies – the regulator called them high-risk assets. The Central Bank has repeatedly warned that cryptocurrencies could pose a threat to the macroeconomic and financial stability of the country.

In August, former Indian Finance Minister Pankaj Chaudhary said that the government does not intend to develop special rules for regulating cryptocurrencies in the country. Recently, RBI Governor Shaktikanta Das said that the digital rupee will help mitigate the uncertainty created by cryptocurrencies.