Cryptocurrency: clear the grey areas

It was recently reported that Trade Minister Wasantha Samarasinghe, in his asset declaration to CIABOC (Commission to Investigate Allegations of Bribery or Corruption), revealed ownership of 3,000 units of cryptocurrency, a digital asset that exists only online and is often referred to as virtual currency, such as Bitcoin. At present, Sri Lanka has no clear regulatory framework to confirm whether cryptocurrency transactions are legal or otherwise.

Central Bank Governor, Dr Nandalal Weerasinghe, has noted that while such assets may be treated as an investment, concerns remain about possible violations of AML (Anti-Money Laundering) and CFT (Countering the Financing of Terrorism) laws.

This raises an important question: why not establish a robust regulatory framework through consultation between the Central Bank and the Ministry of Finance? Proper regulation could safeguard against abuse while simultaneously opening the door to foreign investment, job creation, and innovation in fintech areas that Sri Lanka urgently needs to develop.

Mohamed Zahran, Colombo