Kevin Helms
An Austrian economics student, 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 of economics and cryptography.
Sri Lanka’s central bank warns of crypto in midst of severe economic, political crisis – regulation of Bitcoin news
The Central Bank of Sri Lanka has issued a warning regarding the use of cryptocurrencies in the midst of a devastating economic and political crisis. The central bank emphasized that it “has not given any license or authorization to any entity or company to operate schemes” involving cryptocurrencies.
The Central Bank of Sri Lanka issues cryptocurrency notices
The Central Bank of Sri Lanka (CBSL) on Tuesday published a statement on cryptocurrency entitled “Public awareness in relation to the use of virtual currencies in Sri Lanka.” The report cites “recent developments in relation to the use of virtual currency in international and domestic markets, as well as inquiries related to virtual currency.”
Notes that “Virtual currencies (VCs) are largely unregulated digital representations of value issued by private entities and can be traded electronically,” the Sri Lankan central bank stressed:
CBSL has not granted 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 offering (ICO), mining or virtual currency exchange.”
Furthermore, the Central Bank of Sri Lanka warns that “Electronic Fund Transfer Cards (EFTC) such as debit and credit cards are not permitted to be used for payments related to virtual currency transactions.” The message continues:
Therefore, VCs are considered unregulated financial instruments and have no regulatory oversight or security measures related to their use in Sri Lanka.
“The public is therefore warned about the possible exposure to significant financial, operational, legal and security-related risks as well as concerns about customer protection posed by users of investments in VCs,” the central bank concluded. “The public is also warned against falling victim 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 territory. President Gotabaya Rajapaksa fled the country on Wednesday. He has been blamed for a deep economic crisis as Sri Lankans face an acute shortage of food, fuel and other basic supplies. On Friday, Prime Minister Ranil Wickremesinghe was sworn in as interim leader.
What do you think of the Sri Lankan central bank’s warning about cryptocurrency in the midst of a serious economic crisis? Let us know in the comments section below.
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