The central bank of Sri Lanka(CBSL) has joined several other central banks in the world who has given an order concerning crypto. (CBSL) has warned the public against investing in digital assets.
According to reports, the government fears consumers will be left exposed to operational and security risks. CBSL stated that using digital assets might threaten the state’s financial position even further as it is reportedly on the brink of bankruptcy.
In the apex bank statement, virtual currencies (VCs) such as Ethereum, Bitcoin, and Solana are highly unregulated digital stores of value. CBSL believes that these digital assets furnished by private organizations and are electronically traded contain fraud.
Initial Coin offerings and mining operations are among the bulks that are not authorized. These aspects are completely banned from public usage within the country’s borders.
CBSL also declared, as per rule NO.03 of 2021, Foreign Exchange ACT, NO. 12 of 2017, that the Department of Foreign Exchange of CBSL has regulated Electronic Fund Transfer Cards (EFTCs). Regulations are strictly on ETFC’s transactions based on Virtual currencies. Henceforth Virtual currencies are considered insecure financial assets incompatible with Sri Lanka’s national rule.
The Sri Lankan government regards crypto assets as liabilities and might cause further destruction to the state.