The Government and the Central Bank are prepared to protect Sri Lankans from large-scale cryptocurrency scams taking place around the world, Central Bank Governor Dr Nandalal Weerasinghe said.
He made these remarks while attending the Sri Lanka FinTech Festival 2026, held in Colombo recently.
Concerns over the security of crypto assets have intensified worldwide following an incident involving the theft of more than US$6.3 billion worth of digital assets from Binance, the world's largest cryptocurrency exchange.
The Central Bank Governor stressed that the necessary legal framework, supervisory mechanisms and safeguards were being developed to protect the Sri Lankan public from similar incidents.
He clarified that holding cryptocurrency as an asset is not an offence in Sri Lanka, but that cryptocurrencies cannot be used as a legally recognised means of payment within the country.
The restriction is intended to prevent the use of cryptocurrencies in place of the Sri Lankan rupee in domestic transactions and to safeguard the country's monetary sovereignty.
Meanwhile, the Ministry of Digital Economy has prepared a concept paper outlining the measures required to regulate virtual assets and forwarded it to the Department of Legal Draftsman.
Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando has also stated that Cabinet approval has been granted to take the necessary steps towards introducing a regulatory framework covering cryptocurrencies and other virtual assets.
Under the proposed framework, the Securities and Exchange Commission (SEC) is expected to be designated as the principal regulatory authority. Plans are also underway to introduce a registration process for cryptocurrency exchanges and institutions providing custodial services.
In addition, the Government is taking steps to further strengthen measures to prevent money laundering, terrorist financing and proliferation financing.
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