Sri Lanka now joins the global crypto adoption drive after the country set up a committee for exploring and implementing cryptocurrency mining and blockchain technologies. This committee aims to propose a viable infrastructure for Sri Lanka after studying regulations that are followed by different international markets.
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.
Based on the statement by Samaranayake, the Sri Lankan authorities have seen that there is a need to create “an integrated system of digital banking, blockchain and cryptocurrency mining technology” to enable the nation to remain on par with global partners and international markets. He stated:
“This committee will be mandated to study the regulations and initiatives of other countries such as Dubai, Malaysia, Philippines, EU, and Singapore, etc., and propose a suitable framework for Sri Lanka.”
This proposal was made by the minister of project coordinating and monitoring, Namal Rajapaksa. Based on that proposal, the committee will need to report its cryptocurrency and blockchain-related findings to the Cabinet of Acts, Rules, and Regulations.
Out of the eight members who will sit in the new committee, two of them represent international fintech giants like PricewaterhouseCoopers’ (PwC) Sujeewa Mudalige and Mastercard’s Sandun Hapugoda.
Members from the traditional finance sector include the Central Bank of Sri Lanka director Dharmasri Kumarathunge and Colombo Stock Exchange CEO, Rajeeva Bandaranaike. The other four members represent different authorities like the Department Of Government Information, the President’s Council, Sri Lanka Computer Emergency Readiness Team (SLCERT), and Information and Communication Technology Agency (ICTA).
The committee will monitor laws and regulations that are implemented by many other nations to establish viable rules against terror financing, Anti-Money Laundering (AML), and criminal activities.
Recent reports showed a 706% 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% ($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.