What is Sri Lanka doing to entice investments in blockchain?

Highlights

  • In order to create a crypto-friendly business environment, Sri Lanka announces setting up a committee to study the regulatory framework related to crypto mining and blockchain technology.
  • The committee was proposed in order to attract foreign investment pertaining to blockchain and crypto mining.
  • It would also analyse the risks associated with crypto misuse for terror financing and criminal activities.

Sri Lanka, an island country in South Asia, is the latest to jump on the global crypto bandwagon after setting up a committee for the study of crypto and blockchain technology.

Must Read: Why these 11 nations do not tax Bitcoin gains

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Aims to attract foreign investment in crypto space

Recently this month, Sri Lankan authorities have given the go-ahead to the proposal for exploring and implementing crypto mining technologies in the country.

Related Read: Which 10 global conglomerates are accepting Bitcoin as payment option?

A look at Sri Lankan crypto mining committee

The said committee, which has been appointed by the Sri Lankan government, comprises eight members, a few of which are fintech experts, while the rest are officials from the banking sector.

The members would study the rules and regulations adopted by other nations like Dubai, the Philippines, Singapore, Malaysia, and the EU which are supporting cryptocurrencies.

Further, the committee would also investigate ways to reduce the risks of crypto misuse in the dark web, terror financing, and other fraudulent and criminal activities.

The recommendations and findings would be reported to the Cabinet.

Do Read: How crypto assets are treated for tax purposes in NZ

Other Asian countries think to explore digital currencies

Apart from Sri Lanka, other southern Asian countries, namely, India, Vietnam, and Pakistan, too are thinking to allow the expansion of the use of cryptocurrencies.

It is pointed out that, El Salvador, a Central American country, has officially recognised Bitcoin as a legal tender.

Can’t Miss Reading: Bitcoin As Legal Tender: El Salvador First Nation To Back Cryptocurrency

Sri Lankan central bank wary of crypto trading

The move for setting up of a committee for exploring the crypto space was undertaken despite the CBSL’s (the Central Bank of Sri Lanka) warning in April this year, about the risks revolving around crypto trading and investing.

Related Read: Binance, Houbi cease operations in China after crypto ban

It is noted that the country’s central bank maintains a cautious approach towards cryptocurrencies.

Bottom Line

In order to go global and expand its digital economy, Sri Lankan authorities are making efforts in identifying the opportunities to be at par with other nations when it comes to the crypto space.

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