The Central Bank of Sri Lanka issued an official letter in which it warned the citizens of the country against rash investments in cryptocurrencies and warned about the risks associated with such investments.
The document notes that the purchase of cryptocurrencies such as BTC, ETH or LTC is associated with significant risks of losing funds, since these assets are not regulated and investors are not protected by law. At the same time, it is emphasized that neither mining nor buying cryptocurrencies on exchanges is authorized by the regulator in Sri Lanka. The purchase of digital assets on exchanges can be regarded as a violation of the country’s currency laws.
The Central Bank of Sri Lanka also supported the usual rhetoric that cryptocurrencies are often used for money laundering and terrorist financing. In addition, the high volatility of digital assets can expose the investor to risks and losses.
“Virtual currencies are not defined as an eligible investment category under the 2017 Foreign Exchange Act. It is also prohibited to use debit and credit cards for payments related to digital currencies, ”the document emphasizes.
Recall that last summer, the Sri Lanka regulator began developing a blockchain-based platform for customer identification.
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