Amid the ongoing economic crisis and instability, the Central Bank of Sri Lanka (CBSL) warned its netizens about the risk associated with crypto use by calling them unregulated financial instruments.
In the recent publication, CBSL has made clear that the bank hasn’t issued any license or authorization to operate VC regarding operations in the country including cryptocurrencies, Initial Coin Offerings (ICO), crypto mining, and virtual crypto exchange.
Furthermore, the bank has not permitted any Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards to make transactions for VCs under its Foreign Exchange Act, No 12.
The central bank considers the VC an unregulated entity with no regulatory oversight; therefore, it has advised people to avoid investing in crypto and digital assets due to the financial risk associated with it.
The CBSL also warned people to prevent themselves from falling into crypto and digital assets scams while surfing on the internet and other social media apps.
