Sri Lanka Forms Committee Supervise Blockchain and Cryptocurrency

The expansion of the crypto mining space in Sri Lanka is expected to attract investors from abroad.

By Radhika Parashar | Updated: 11 October 2021 16:26 IST

Sri Lanka Forms Committee Supervise Blockchain and Cryptocurrency

Bitcoin mining is done by solving complex math equations on advance PCs

Highlights

Sri Lanka is moving forward to expand its crypto space
A new committee has been set-up to oversee the growth in this sector
Eight fintech and bank officials are part of the committee

The Sri Lankan government has appointed a new committee with eight members. Fintech experts and officials from the banking sector have been roped-in as part of the newly formed committed. As part of their research, the committee members will be observing the rules and regulations put in-place by other nations that are supporting cryptocurrencies. In terms of concerns, Sri Lanka will be exploring ways to reduce risks of crypto misuse in terror financing, money laundering, and other criminal activities.

Mohan Samaranayake, the director-general of Sri Lanka's government information has confirmed that the authorities have approved a proposal that aims to bring-in more investment in the country's crypto space.

“The necessity to create an integrated system of digital banking, blockchain and cryptocurrency mining technology has been identified to pace on par with the global partners in the region while expanding trade to the international markets,” an official statement from the Sri Lankan government said.

Crypto Mining Proposed as ‘Negative’ Industry in China to Stop Investments

Namal Rajapaksa, the minister of project coordinating and monitoring is the mastermind behind this project, according to a report by Cryptovibes.

The committee will also need to report its findings to the Cabinet of Acts, Rules, and Regulations.

With this development, Sri Lanka has joined the other southern Asian countries like Vietnam, India, and Pakistan in terms of allowing the expansion of the crypto space.

Earlier last month the central American country of El Salvador legalised Bitcoin as its legal tender alongside the US dollar.

On October 8, Mohan Samaranayake, Sri Lanka's director-general of government information shared a letter that shows that the authorities have already approved a recent proposal that strives to attract a lot of investment in the nation's blockchain and crypto sectors.

Recent reports showed a 706 percent increase in Central and Southern Asia and Oceania from July 2021 to June 2021. Based on the data shared by Chainalysis, the value of transactions in these regions reached 14 percent ($572.5 billion), with India accounting for the biggest global transaction value.

In April 2021, Sri Lanka's central bank issued a public notice against most of the risks that come with crypto investments, citing a lack of legal or regulatory recourse. But, barely a month after the notice, the central bank shortlisted three banks for creating a proof-of-concept for a shared Know Your Customer facility using blockchain.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Further reading: Sri lanka, Cryptocurrency, blockchain

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More