The Central Bank of Sri Lanka refused to legalize cryptocurrencies

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Central Bank of Sri Lanka (CBSL) stated that despite the economic crisis in the country, he is not ready to accept cryptocurrency as a legal asset.

According to representatives of the regulator,the use of cryptocurrencies will continue to be prohibited in the country. The supervisor has not and does not approve initial coin offerings (ICOs), digital asset mining, or digital asset exchanges.

The Central Bank reminded that cryptocurrencies are not subject to regulatory supervision in the country, so they cannot be used or issued.

“We once again warn the public aboutpotential significant financial, operational and legal risks. About security threats and customer protection issues that arise from investments in virtual currencies. Investors should understand that they are cautioned against falling prey to various venture capital schemes offered through the Internet and other media,” CBSL said in an official release. 

In the context of economic turmoil inIn Sri Lanka, cryptocurrencies are increasingly being seen as a possible solution to the problem. Tron founder Justin Sun said he could use Web3 to help the country recover from its economic crisis. 

“I have some great ideas on how to take Sri Lanka out of bankruptcy and into prosperity using Web3.”

In 2018, Sri Lankan Prime Minister RanilWickremesinghe said that the government plans to make the country rich and prosperous by 2025. Although authorities have taken a tough stance on cryptocurrencies, some residents have resorted to investing in digital currencies as a hedge against the economic crisis. Most residents decided to convert their savings into dollar-pegged stablecoins amid the depreciating local currency.

Last year, Sri Lanka's cabinet formed a committee to develop regulatory rules governing blockchain technology, cryptocurrency mining and digital banking.