Sri Lankan Central Bank Negates Authorization of ICOs

The Sri Lankan Central Bank has officially asserted that the platform did not sanction any virtual currency exchanges, mining activities, or initial coin offering (ICO). Previously, Justin Sun recently announced that assistance could be provided by him to pull out the country from the ditch of bankruptcy.

Sri Lankan Central Bank attempts to Eliminate Concerns about Digital Currencies’ Authorization

The Central Bank of the country turned toward its official online portal to make this assertion and clarified that keeping in view the domestic as well as international markets after virtual currency as well as the research done on it, the central bank of Sri Lanka (CBSL) intends to make the public aware that the status of virtual currencies (VCs) is that of the virtual value representations that are not regulated by any central authority and they can be transferred electronically as well as by some private bodies.

In recent times it was mentioned by CBSL via press releases in 2021 as well as 2018 that the platform has not provided any permission all license to any of the companies or the bodies to run their operations dealing with VCs, taking into account crypto assets, and no initial coin offerings (ICOs) have even been authorized by the venue. Apart from this, electronic fund transfer cards (EFTCs) like credit cards and debit cards do not have any permission to be utilized in terms of making payments dealing with virtual currency transfers.

In this way, VCs are categorized as unregulated financial tools and they do not have any safeguards, related to their utilization in the country, or regulatory oversight. That is why, the authorities have issued a warning to the common masses that any potential exposure to sufficient economic, security-related, legal, all operational hazards and consumer protection concerns could be extremely dangerous.

Investors Change Their Plan

Another caution that the authorities have brought to the front is that the public should be careful about the schemes offered on the behalf of VCs via the internet or the rest of the media types. Because of the substantial delays that occurred in paying the debts taken from the International Monetary Fund (IMF) by Sri Lanka, investors are moving toward the bilateral creditors of the country as Ranil Wickremesinghe (the prime minister) as well as Gotabaya Rajapaksa (the president) have resigned from their positions.