Central Bank of Sri Lanka Warns of ‘Significant Risks’ in Using and Investing in Crypto

0 6

Central Bank of Sri Lanka Warns of 'Significant Risks' in Using and Investing in Crypto

knife

Sri Lanka’s central bank has issued a warning about “the significant risks associated with using and investing in cryptocurrency.” The central bank reminded the public that “cryptocurrencies are unregulated investment instruments which are not recognized as an asset class in Sri Lanka.”

Sri Lanka’s Crypto Warning

The Central Bank of Sri Lanka (CBSL) issued a notice last week, warning the public of “the significant risks associated with using and investing in cryptocurrency.”

The Sri Lankan monetary authority explained that it recently received complaints showing that “members of the public have incurred heavy losses on their crypto investments and in certain instances have also been subject to financial scams conducted through crypto-related schemes.”

Referencing its previous warnings from 2018 to 2022 about financial, operational, legal, and security risks related to cryptocurrency, the central bank stated, “These risks and concerns have already materialized with the recent failures of various global institutions engaged in cryptocurrency businesses, and the collapse and loss of value of some cryptocurrencies,” emphasizing:

The public is reminded that cryptocurrencies are unregulated investment instruments which are not recognized as an asset class in Sri Lanka. Further, cryptocurrencies are not considered as legal tender in Sri Lanka and have no regulatory safeguards relating to their usage in the country.

On March 18, 2021, the central bank issued a set of regulations restricting the use of Electronic Fund Transfer Cards (EFTCs), including debit and credit cards, for payments related to virtual currency transactions. The CBSL warned that cryptocurrency operates through informal channels, providing no contribution to the national economy and posing a risk of losing valuable foreign currency for the country.

Moreover, the central bank cautioned about the increasing number of financial scams promising high returns from crypto investments. “These scams include deceiving individuals and obtaining money from them with the promise of providing a high return by investing money in cryptocurrency, as well as deceiving individuals to invest in fraudulent cryptocurrency projects. Such scams circumvent traditional regulatory and legal protection mechanisms, resulting in individuals losing their hard-earned money,” the CBSL described.

The central bank continued:

The public is also notified that CBSL has not issued any licence or authorized any individual or business to operate schemes involving cryptocurrency.

Furthermore, the CBSL stressed that it “has not authorized any initial coin offerings (ICOs) or any variant of it, cryptocurrency mining operations, cryptocurrency exchanges, deposit-taking or custody services related to cryptocurrency or any cryptocurrency investment advisory service.”

The notice concludes with the CBSL urging “those who are engaged in promoting and facilitating the promotion of investing and trading in cryptocurrency to refrain from such activities, considering the wide range of risks associated with cryptocurrency and the resulting hardships to the public, including financial losses.”

What do you think about the crypto warning by Sri Lanka’s central bank? Let us know in the comments section below.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 51,135.70
ethereum
Ethereum (ETH) $ 3,058.29
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 386.86
solana
Solana (SOL) $ 101.89
staked-ether
Lido Staked Ether (STETH) $ 3,048.34
xrp
XRP (XRP) $ 0.53576
usd-coin
USDC (USDC) $ 1.00
cardano
Cardano (ADA) $ 0.578063
avalanche-2
Avalanche (AVAX) $ 36.67
tron
TRON (TRX) $ 0.137971
dogecoin
Dogecoin (DOGE) $ 0.084701
chainlink
Chainlink (LINK) $ 18.28
polkadot
Polkadot (DOT) $ 7.67
matic-network
Polygon (MATIC) $ 0.981587
uniswap
Uniswap (UNI) $ 10.68
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 51,197.72
the-open-network
Toncoin (TON) $ 2.12
shiba-inu
Shiba Inu (SHIB) $ 0.00001
internet-computer
Internet Computer (ICP) $ 12.21
bitcoin-cash
Bitcoin Cash (BCH) $ 263.82
litecoin
Litecoin (LTC) $ 69.65
dai
Dai (DAI) $ 1.00
immutable-x
Immutable (IMX) $ 3.20
filecoin
Filecoin (FIL) $ 7.88
cosmos
Cosmos Hub (ATOM) $ 10.36
leo-token
LEO Token (LEO) $ 4.18
near
NEAR Protocol (NEAR) $ 3.74
ethereum-classic
Ethereum Classic (ETC) $ 26.92
kaspa
Kaspa (KAS) $ 0.161679
bittensor
Bittensor (TAO) $ 583.30
optimism
Optimism (OP) $ 3.69
blockstack
Stacks (STX) $ 2.46
hedera-hashgraph
Hedera (HBAR) $ 0.104405
aptos
Aptos (APT) $ 9.44
vechain
VeChain (VET) $ 0.046989
first-digital-usd
First Digital USD (FDUSD) $ 1.00
stellar
Stellar (XLM) $ 0.114743
injective-protocol
Injective (INJ) $ 35.48
okb
OKB (OKB) $ 50.07
lido-dao
Lido DAO (LDO) $ 3.35
mantle
Mantle (MNT) $ 0.892951
celestia
Celestia (TIA) $ 16.37
the-graph
The Graph (GRT) $ 0.293009
render-token
Render (RNDR) $ 7.18
crypto-com-chain
Cronos (CRO) $ 0.092807
monero
Monero (XMR) $ 128.52
arbitrum
Arbitrum (ARB) $ 1.82
sei-network
Sei (SEI) $ 0.799446
maker
Maker (MKR) $ 2,054.71
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,359.22
sui
Sui (SUI) $ 1.59
beam-2
Beam (BEAM) $ 0.03227
thorchain
THORChain (RUNE) $ 5.40
algorand
Algorand (ALGO) $ 0.199102
flare-networks
Flare (FLR) $ 0.045802
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,128.26
elrond-erd-2
MultiversX (EGLD) $ 57.65
quant-network
Quant (QNT) $ 104.55
flow
Flow (FLOW) $ 0.996168
aave
Aave (AAVE) $ 99.29
bitcoin-sv
Bitcoin SV (BSV) $ 73.72
dydx-chain
dYdX (DYDX) $ 3.36
theta-token
Theta Network (THETA) $ 1.38
bitget-token
Bitget Token (BGB) $ 0.985549
starknet
Starknet (STRK) $ 1.89
ordinals
ORDI (ORDI) $ 63.05
mina-protocol
Mina Protocol (MINA) $ 1.25
havven
Synthetix Network (SNX) $ 3.96
true-usd
TrueUSD (TUSD) $ 0.977642
tokenize-xchange
Tokenize Xchange (TKX) $ 15.53
worldcoin-wld
Worldcoin (WLD) $ 8.91
helium
Helium (HNT) $ 8.29
the-sandbox
The Sandbox (SAND) $ 0.523467
chiliz
Chiliz (CHZ) $ 0.131917
fantom
Fantom (FTM) $ 0.414407
apecoin
ApeCoin (APE) $ 1.92
axie-infinity
Axie Infinity (AXS) $ 8.25
gala
GALA (GALA) $ 0.033092
fetch-ai
Fetch.ai (FET) $ 1.07
blur
Blur (BLUR) $ 0.73146
whitebit
WhiteBIT Coin (WBT) $ 7.12
kucoin-shares
KuCoin (KCS) $ 10.55
bittorrent
BitTorrent (BTT) $ 0.000001
dydx
dYdX (ETHDYDX) $ 3.36
cheelee
Cheelee (CHEEL) $ 18.51
arweave
Arweave (AR) $ 15.27
tezos
Tezos (XTZ) $ 1.09
osmosis
Osmosis (OSMO) $ 1.56
sats-ordinals
SATS (Ordinals) (SATS) $ 0.00000045912301
decentraland
Decentraland (MANA) $ 0.521042
frax-ether
Frax Ether (FRXETH) $ 3,047.84
singularitynet
SingularityNET (AGIX) $ 0.733305
woo-network
WOO (WOO) $ 0.500932
akash-network
Akash Network (AKT) $ 3.95
conflux-token
Conflux (CFX) $ 0.241712
dymension
Dymension (DYM) $ 6.14
ronin
Ronin (RON) $ 2.99
eos
EOS (EOS) $ 0.782276
astar
Astar (ASTR) $ 0.159916