Central Bank of Sri Lanka warns against the usage of Cryptocurrency 6071
Crypto News
Akriti Mathur
Apr 17, 2018 at 10:20 AM
Virtual Currencies or Cryptocurrencies have been gaining interest amongst its users and followers. It has expanded its reach globally amongst different people, organisations and financial institutions. But few countries are still skeptical about the digital currency. One of those countries is Sri Lanka.
The popular financial institution "Central Bank of Sri Lanka" has stated facts that are against cryptocurrency. It has made it clear that they have not given any license or authorization for cryptocurrency dealings to any organizations. Additionally, they have not given any authorization or permission for Initial Coin Offerings (ICOs).
The Central Bank also stated about how transactions are executed through cryptocurrency. They told that cryptocurrencies use decentralized P2P network.
They quoted, “Due to the absence of a centralized authority such as a Central Bank to guarantee the value of the currency and regulate transactions, there is no recourse in the event of any user or transaction related issues or disputes. The value of virtual currencies is dependent on speculation and is not backed by an underlying asset or a regulatory framework. Due to this, virtual currencies may demonstrate major volatility.”
The financial institution identifies cryptocurrency dealings as a hazard for their country giving birth to illegal activities. Moreover, its usage (may be unintentional) can result in anti-money laundering and fights against terrorism financing.
The Central bank stated, “It is hereby notified to the public that CBSL has not given license or authorization to any entity or company to operate schemes involving virtual currencies, including cryptocurrencies, and has not authorized any Initial Coin Offerings (ICOs).”
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