The Sri Lankan government has appointed a new eight-member committee. Fintech experts and banking sector executives have been roped in as part of the newly formed commitment. As part of their research, the committee members will follow the rules and regulations established by other countries that are supporting cryptocurrencies. In terms of concerns, Sri Lanka will explore ways to reduce the risk of crypto misuse in terrorism financing, money laundering and other criminal activities.
Sri Lanka’s Director General of Government Information Mohan Samarnayake has confirmed that the authorities have approved a proposal that aims to bring more investment into the country’s crypto space.
An official statement from the Government of Sri Lanka said, “The need to create an integrated system of digital banking, blockchain and cryptocurrency mining technology has been recognized to synergize with global partners in the region while expanding business to international markets. “
According to a report by Cryptovibes, Minister of Project Coordination and Monitoring Namal Rajapaksa is the mastermind behind the project.
The committee will also be required to report its findings to the Cabinet of Acts, Rules and Regulations.
With this development, Sri Lanka joins other South Asian countries such as Vietnam, India and Pakistan in allowing the expansion of the crypto space.
Earlier last month the Central American country of El Salvador legalized bitcoin as legal tender alongside the US dollar.
On 8 October, Sri Lanka’s Director General of Government Information, Mohan Samaranaike, shared a letter indicating that the authorities have recently approved a proposal that aims to attract a lot of investment in the country’s blockchain and crypto sectors. tries.
Recent reports showed an increase of 706 percent in Central and Southern Asia and Oceania from July 2021 to June 2021. Based on data shared by Chainalysis, the value of transactions reached 14 percent ($572.5 billion) in these regions, with India accounting for the largest share. Global transaction value.
In April 2021, Sri Lanka’s central bank issued a public notice against most of the risks that come with crypto investments, citing a lack of legal or regulatory recourse. But, barely a month after the notice, the central bank shortlisted three banks to create proof-of-concept for shared Know Your Customer facility using blockchain.