Sri Lanka's central bank reiterates crypto warning following protesters seize president's residence
Thousands of Sri Lankans took to the streets of Colombo to protest the government's response to the country's economic situation.
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Amid economic and political turmoil, the Central Bank of Sri Lanka, or CBSL, has warned the public against buying crypto due to lack of regulatory oversight.
In a Tuesday notice, the CBSL said it has not authorized or licensed any company in Sri Lanka to offer crypto-related services, including exchanges, initial coin offerings and mining mining. The central bank said the warning was in response to "recent developments regarding the use of virtual currency", likely referring to the market slowdown and significant price volatility of cryptocurrencies like Bitcoin (BTC). /p>
Virtual currencies “…are considered unregulated financial instruments and are not subject to any regulatory oversight or safeguards relating to their use in Sri Lanka,” the CBSL said. "The public is therefore warned of the possible exposure to significant financial, operational, legal and security risks, as well as customer protection issues posed to users by investments in VCs."
>The announcement came as inflation in Sri Lanka hit over 54% in June, with SBSL bank raising interest rates to 15.5%. According to central bank data, inflation is around 45% at the time of publication, affecting the cost of living for the 22 million people living in Sri Lanka.
On Saturday, hundreds of protesters stormed the residence of Sri Lankan President Gotabaya Rajapaksa in Colombo, reportedly seized 17.8 million rupees (approximately $50,000 at press time) and took control of the building, using facilities and eating stored food. . Thousands of Sri Lankans have also
Thousands of Sri Lankans took to the streets of Colombo to protest the government's response to the country's economic situation.
New
Amid economic and political turmoil, the Central Bank of Sri Lanka, or CBSL, has warned the public against buying crypto due to lack of regulatory oversight.
In a Tuesday notice, the CBSL said it has not authorized or licensed any company in Sri Lanka to offer crypto-related services, including exchanges, initial coin offerings and mining mining. The central bank said the warning was in response to "recent developments regarding the use of virtual currency", likely referring to the market slowdown and significant price volatility of cryptocurrencies like Bitcoin (BTC). /p>
Virtual currencies “…are considered unregulated financial instruments and are not subject to any regulatory oversight or safeguards relating to their use in Sri Lanka,” the CBSL said. "The public is therefore warned of the possible exposure to significant financial, operational, legal and security risks, as well as customer protection issues posed to users by investments in VCs."
>The announcement came as inflation in Sri Lanka hit over 54% in June, with SBSL bank raising interest rates to 15.5%. According to central bank data, inflation is around 45% at the time of publication, affecting the cost of living for the 22 million people living in Sri Lanka.
On Saturday, hundreds of protesters stormed the residence of Sri Lankan President Gotabaya Rajapaksa in Colombo, reportedly seized 17.8 million rupees (approximately $50,000 at press time) and took control of the building, using facilities and eating stored food. . Thousands of Sri Lankans have also
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