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Jafrin Ahmed
Jul 13, 2022
by Jafrin Ahmed

Sri Lanka Central Bank Still Against Buying Cryptocurrencies

Sri Lanka Central Bank

Table of contents

  1. Crypto Remains Illegal in Sri Lanka
  2. Sri Lanka's Collapsing Economy
Amid the ongoing financial turmoil in Sri Lanka, the Central Bank of Sri Lanka (CBSL) has warned the public against buying crypto assets. Additionally, the financial institution also clarified that it has not authorized any financial firm to offer crypto-related services to Sri Lanka residents.

Crypto Remains Illegal in Sri Lanka

In a blog post titled 'Public Awareness in Relation to the Use of Virtual Currencies in Sri Lanka,' published on Tuesday, The Central Bank of Sri Lanka (CBSL) issued a notice against crypto purchases due to the lack of regulatory oversight.

The central bank said the warning was in response to "recent developments in relation to virtual currency usage," likely referring to the ongoing crypto market downturn.

"The CBSL has not given any license or authorization to any entity or company to operate schemes involving virtual currencies (VCs), including cryptocurrencies, and has not authorized any Initial Coin Offerings (ICO), mining operations or Virtual Currency Exchanges," said the blog post.
"The public is, therefore, warned of the possible exposure to significant financial, operational, legal and security-related risks as well as customer protection concerns posed to the users by investments in Virtual Currencies (VCs). The public is also warned not to fall prey to various types of VC schemes offered through the Internet as well as other forms of media," the bank said.

Sri Lanka's Collapsing Economy

The announcement comes amid inflation in Sri Lanka reaching a record of more than 54% in June as the central bank raised interest rates to 15.5%. This led residents to resort to massive protests calling for the resignation of the government.

In the meantime, the falling value of the local currency prompted many Sri Lankans to invest in other assets and cryptocurrencies.

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Sri Lanka Central Bank Still Against Buying Cryptocurrencies
Jafrin Ahmed
Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

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