CBSL warns against investing in cryptocurrencies

Amani Nilar | Published: 11:41 AM Apr 12 2021
Business CBSL warns against investing in cryptocurrencies

The Central Bank of Sri Lanka (CBSL) has published a notice regarding public awareness in investing in virtual currencies within Sri Lanka.

“Considering the recent inquiries on virtual currency usage in the international and domestic markets, the Central Bank of Sri Lanka (CBSL) wishes to inform the public of the risks associated with investing in virtual currencies,” the notice reads.

The notice issued by CBSL emphasised that there are no regulatory safeguards relating to the usage, investment or dealing in cryptocurrency within Sri Lanka, and investing in cryptocurrencies could pose serious risks.

It also highlights the main risks associated with the investment of cryptocurrencies, including users and investors not having any regulatory or specific legal recourse in the event of any user or transaction related issues or disputes, the volatile nature of cryptocurrency and investors constantly being at risk of making large losses.

The CBSL also stated that cryptocurrencies have been associated with financing terrorist activities and is used by criminals to launder criminal proceeds. 

Moreover, the CBSL pointed out that the purchasing of cryptocurrencies from abroad is a violation of Foreign Exchange Regulations in terms of the Foreign Exchange Act No. 12 of 2017.

Amani Nilar | Published: 11:41 AM Apr 12 2021

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