Sri Lanka joins the global cryptocurrency adoption movement after forming a committee to research and implement blockchain and cryptocurrency technology.
A statement released Oct. 8 by Sri Lanka’s CEO of Government Information, Mohan Samaranayake, shows that authorities have approved a recent proposal aimed at attracting blockchain investment and cryptocurrency measures in the country.
According to Samaranayake, the Sri Lankan government has identified the need to develop an “integrated ecosystem of digital banking, blockchain technology and cryptocurrency mining” to stay on par with global partners and international markets. he added:
“This committee will be tasked with examining the regulations and initiatives of other countries such as Dubai, Malaysia, the Philippines, the EU, Singapore, etc., and suggesting an appropriate framework for Sri Lanka.”
The proposal was made by Namal Rajapaksa, Minister of Project Coordination and Monitoring, which requires the Commission to report its findings regarding cryptography and blockchain in accordance with laws, rules and regulations.
Of the eight committee members, two represent international financial giants, including Sandon Khabogoda of Mastercard and Suzheva Mudalige of PricewaterhouseCoopers (PwC). The Traditional Finance organization includes the CEO of the Colombo Stock Exchange, Rajiva Bandaranaike, and the Director of the Central Bank of Sri Lanka, Dharmasri Kumarathong.
The other four members represent various national authorities, including the Sri Lanka Computer Emergency Preparedness Team (SLCERT), the Department of Government Information, the Information and Communications Technology Agency (ICTA) and the President’s Council.
In support of this initiative, the Commission will also monitor the laws and regulations applied by other countries to establish rules for combating money laundering, terrorist financing and criminal activity.
Related Topics: Asia Cryptocurrency Transaction Volume Increased 706% As Institutional Adoption Increased – Ratio Analysis
The latest report from Cointelegraph points to a 706% increase in Central and South Asia and Oceania between July 2020 and June 2021. According to data provided by Chainalysis, the region’s transaction value is 14% ($ 572.5 billion), with India representing the world’s highest transaction value.
In April, the Central Bank of Sri Lanka issued a public statement on the risks associated with investing in cryptocurrencies, citing a lack of legal or regulatory resources. However, just a month after the announcement, the central bank issued three banks to develop a concept certificate for a joint KYC mechanism using blockchain.