The Central Bank of Sri Lanka (CBSL) has said that despite the country’s economic crisis, it is not ready to accept cryptocurrency as a legitimate asset.
According to representatives of the regulator, the use of cryptocurrencies in the country will continue to be prohibited. The Supervisory Authority has not and does not approve Initial Coin Offerings (ICOs), digital asset mining, and digital asset exchanges.
The Central Bank recalled that cryptocurrencies are not subject to regulatory oversight in the country, so they cannot be used and issued.
“We once again warn the public of potential significant financial, operational and legal risks. About security-related threats and customer protection issues that arise from investments in virtual currencies. Investors must understand that they are being warned against falling prey to various venture capital schemes being offered through the Internet and other media,” the CBSL said in a statement.
With the economic turmoil in Sri Lanka, cryptocurrencies are increasingly seen as a possible solution to the problem. Tron founder Justin Sun said he can use Web3 to help the country get out of the economic crisis.
“I have some great ideas on how to get Sri Lanka out of bankruptcy and into prosperity with Web3.”
In 2018, Sri Lankan Prime Minister Ranil Wickremesinghe revealed that the government plans to make the country rich and prosperous by 2025. While the authorities are taking a tough stance on cryptocurrencies, some residents have resorted to investing in digital currencies as a hedge against the economic crisis. Most residents have decided to convert their savings into dollar-pegged stablecoins amid a depreciating local currency.
Last year, the Sri Lankan cabinet formed a committee to develop regulations governing blockchain technology, cryptocurrency mining and digital banking.
Source: Bits
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