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The Central Bank of Sri Lanka (CBSL) reiterated its stance on cryptocurrency measures in a new notice dated July 12. We confirmed that no entity was allowed to perform digital asset activities and warned that users would not be protected if they were victims of different types of VCs. [virtual currency] scheme. “
Cryptocurrency is Not banned In Sri Lanka. But state lawmakers are pushing the rupee idea above all else. As far as cryptocurrencies are concerned, this translates into a “buyer’s attention” approach to discourage citizens from investing.
To summarize the findings of the Research Committee on the use of blockchain and cryptocurrencies in October 2021, then CBSL Governor Ajith Nivard Cabraal Cryptographic investors said they were responsible for their actions. Cabraal commented that the only approved pricing / payment system is the rupee.
“It’s not like a barter system. The currency unit of Sri Lanka is the rupee. Only the rupee is approved by the central bank … nothing else is approved.”
The July 12 notice confirmed that CBSL has not authorized or endorsed any company involved in cryptocurrencies to do business in Sri Lanka, including companies that provide exchange services.
“CBSL does not license or approve entities or companies to operate schemes that include VCs containing cryptocurrencies, and does not approve initial coin offerings (ICOs), mining operations, or cryptocurrency exchanges. Hmm.”
He added that he cannot buy cryptocurrencies using “wire transfer cards” (debit and credit cards), citing Foreign Exchange Law No. 12 (2017).
Given that the authorities consider cryptocurrencies to be unregulated financial instruments, there is no regulatory oversight or protection regarding the use and handling of cryptocurrencies in Sri Lanka.
The CBSL’s position is somewhat surprising given the current situation in the country.
People are looking at cryptocurrencies as informal payment rails to fill the gaps left by the downturn in domestic currencies, as evidenced by the collapse of several currencies in the past, such as Venezuela’s hyperinflation. Is facing.
Riots are rampant throughout Sri Lanka due to power outages, food shortages and drug shortages.president Gotabaya Rajapaksa Following the strength of anti-government protests, he fled the country on Wednesday and a state of emergency was issued.
May 19th, Sri Lanka This century, it became the first Asia-Pacific country to default. Bond holders and creditors have $ 51 billion in debt, with major holders being Japan, China and India. Current CBSL Governor Nandaral Weerasinge said Sri Lanka would not be able to pay without a restructuring contract (that is, without taking on more debt).
“Our position is clear. We say we can’t pay until they come to restructuring.”
according to Bloomberg, The IMF will continue to monitor the situation. However, with regard to Rajapaksa’s escape from the country, restructuring negotiations have receded due to the lack of a “constitutionally mandated government to negotiate.”
