In the midst of a crisis, Sri Lanka remembers that the use of cryptocurrencies is prohibited

In the midst of a political crisis, the Central Bank of Sri Lanka, a South Asian country, warns its citizens against the use of cryptocurrencies. The government is firm and remembers it blockchains are not regulated in the country .

As Sri Lanka is undergoing an unprecedented economic and political crisis, leading in particular to the fall and exile of its president Gotabaya Rajapaksa, the CBSL, Central Bank of Sri Lanka, declared on July 12, 2022 (TechCrunch) that it would not authorize cryptocurrencies as legal tender in the country. Furthermore, the government did not hesitate to remind other banks that it has granted ” no license or other agreement to operate “.

Concerns about cryptocurrencies

In a shared statement on its official website, Sri Lanka’s central bank said it has not authorized any cryptocurrency transactions or virtual currency exchange operations in the country: ” Pursuant to the Instructions n. 03 of 2021 pursuant to the Foreign Exchange Act, n. 12 of 2017 issued by the CBSL Department of Foreign Exchange, electronic funds transfer cards (EFTC) such as debit cards and credit cards cannot be used for payments related to virtual currency transactions “.

Central Bank of Sri Lanka // Source: Official site

In fact, in South Asia, virtual currencies are considered “ financial instruments that are not regulated and do not benefit from any regulatory control or guarantees relating to their use in the country “, As CBSL specifies on its website.

This warning, launched by the Central Bank, comes at a time when the local economy is facing a drastic crisis: according to a document shared by CBSL, inflation would have reached an annual high of 54.6% in June 2022. Sri The Lankan rupee, the country’s currency, would therefore have prompted many locals to invest in cryptocurrencies.

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