After establishing a committee to explore and implement blockchain and crypto mining technologies, Sri Lanka joined the global crypto adoption drive.
Mohan Samaranayake (Sri Lanka’s Director General for Government Information) shared a letter on October 8 that showed that authorities had approved a proposal to attract investment in the country’s cryptocurrency and blockchain initiatives.
Samaranayake stated that the Sri Lankan authorities recognized the need to develop “an integrated system digital banking, blockchain, and cryptocurrency mining technology” to keep up with international partners and markets. He said:
“This committee will have the responsibility to examine the regulations and initiatives from other countries like Singapore, Malaysia, Philippines, EU, and Singapore and then propose a framework that is suitable for Sri Lanka.”
Namal Rajapaksa (Minister of Project Coordinating and Monitoring), proposed that the committee report any crypto- and blockchain-related findings to Cabinet of Acts Rules and Regulations.
Out of the eight members in the committee, two members represent international fintech giants including Mastercard’s Sandun Hapugoda and PricewaterhouseCoopers’ (PwC) Sujeewa Mudalige. Rajeeva Bandaranaike, CEO of Colombo Stock Exchange, and Dharmasri Kumarathunge (Director of the Central Bank of Sri Lanka) are two members from traditional finance.
The four remaining members are representatives of various national authorities, including Sri Lanka Computer Emergency Readiness Team, Department Of Government Information, Information and Communication Technology Agency, (ICTA), and the President’s Council.
The committee will support this initiative by monitoring laws and regulations that have been implemented in other countries to create rules against Anti-Money Laundering, terror financing, and criminal activities.
Similar: Crypto transactions rise 706% in Asia as institutional acceptance grows — Chainalysis
Recent Cointelegraph reports highlighted a 706% increase in Central and Southern Asia, Oceania and Oceania during the period July 2020 to June 2021. Chainalysis data shows that the region’s transactions totaled 14% (or $5572.5 billion), India being the largest global transaction value.
In April, the central bank of Sri Lanka issued a notice warning about the risks associated cryptocurrency investments. It cited a lack in legal or regulatory recourse. The notice was only a month old when the central bank selected three banks to develop a proof of concept for a shared Know Your Customer facility that uses blockchain.