Home CryptoCurrency News Sri Lanka’s Central Bank Warns About Crypto Amid Severe Economic, Political Crisis
CryptoCurrency News - July 17, 2022

Sri Lanka’s Central Bank Warns About Crypto Amid Severe Economic, Political Crisis

Sri Lanka’s Central Bank Warns About Crypto Amid Severe Economic, Political Crisis

Sri Lanka’s central bank issued a warning regarding the use of cryptocurrencies amid a devastating economic and political crisis. The central bank stressed that it “has not given any license or authorization to any entity or company to operate schemes” involving cryptocurrencies.

Sri Lanka’s Central Bank Issues Notice About Cryptocurrency

The Central Bank of Sri Lanka (CBSL) published a notice about cryptocurrency Tuesday titled “Public Awareness in Relation to the Use of Virtual Currencies in Sri Lanka.” The notice cites “recent development in relation to virtual currency usage in the international and domestic markets as well as the inquiries related to virtual currency.”

Noting that “Virtual currencies (VCs) are largely unregulated digital representations of value that are issued by private entities and can be electronically traded,” the Sri Lankan central bank emphasized:

CBSL has not given any license or authorization to any entity or company to operate schemes involving VCs, including cryptocurrencies.

The central bank further noted that it “has not authorized any initial coin offerings (ICO), mining operations or virtual currency exchanges.”

Furthermore, the Central Bank of Sri Lanka warns that “Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards are not permitted to be used for payments related to virtual currency transactions.” The notice continues:

Therefore, VCs are considered as unregulated financial instruments and have no regulatory oversight or safeguards relating to their usage in Sri Lanka.

“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 VCs,” the central bank concluded. “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.”

Earlier this week, protesters stormed the former Sri Lankan prime minister’s compound. President Gotabaya Rajapaksa fled the country Wednesday. He has been blamed for a deep economic crisis as Sri Lankans face acute shortages of food, fuel, and other basic supplies. Prime Minister Ranil Wickremesinghe was sworn in Friday as temporary leader.

Tags in this story
sri lanka, sri lanka bitcoin, Sri Lanka Central Bank crypto, sri lanka crypto, sri lanka cryptocurrency, Sri Lanka economic crisis, Sri Lanka political crisis, Sri Lankan cryptocurrency

What do you think about the Sri Lankan central bank warning about cryptocurrency amid a severe economic crisis? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

India Calls on G20 to Bring Crypto Within Global 'Automatic Exchange of Information' Framework

India Calls on G20 to Bring Crypto Within Global ‘Automatic Exchange of Information’ Framework

Bank of England's Cunliffe Warns Crypto Is 'Prone to Collapse' — Touts 'Same Risk, Same Regulatory Outcome'

Bank of England’s Cunliffe Warns Crypto Is ‘Prone to Collapse’ — Touts ‘Same Risk, Same Regulatory Outcome’

Image Credits: Shutterstock, Pixabay, Wiki Commons, lev radin

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitnews.gold does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer
Show comments

bitnews

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Not The 2018 Bear Market, Bitcoin Price Could Hit $20,000 In December

The Bitcoin price rebounded off the low of its current range and retraced its weekend loss…