Amid a Serious Economic and Political Crisis, Sri Lanka’s Central Bank Issues a Warning Regarding Crypto

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Last Updated on July 17, 2022 by Bitfinsider

“Public Awareness in Relation to the Use of Virtual Currencies in Sri Lanka,” a notice about cryptocurrencies, was released by the Central Bank of Sri Lanka (CBSL) on Tuesday. The notification refers to the “recent development in relation to virtual currency usage in the international and domestic markets as well as the inquiries related to virtual currency.”

With emphasis 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 said: “CBSL has not given any license or authorization to any entity or company to operate schemes involving VCs, including cryptocurrencies.”

The central bank also stated that it “has not authorized any Initial Coin Offerings (ICO), mining operations or virtual currency exchanges.” It also warned 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,” and continued that “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 summarized. “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.”

Protesters broke into the former Sri Lankan prime minister’s compound earlier this week. On Wednesday, Gotabaya Rajapaksa, the president abandoned his post and fled the nation. Due to severe shortages of food, fuel, and other necessities, he has been held responsible for a severe economic catastrophe. On Friday, the Prime Minister, Ranil Wickremesinghe took office as interim leader.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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