Sri Lanka has joined the global crypto adoption by forming a committee to investigate and apply blockchain and crypto mining technologies, the committee plans to propose a suitable framework for Sri Lanka.
Sri Lanka’s director-general of government information, Mohan Samaranayake, shared a letter on Oct. 8 indicating that the authorities have approved a recent proposal aimed at attracting investments in the country’s blockchain and cryptocurrency efforts.
The Sri Lankan government, according to Samaranayake, has highlighted the necessity to establish “an integrated system of digital banking, blockchain, and cryptocurrency mining technologies” in order to keep up with global partners and international markets. He continued, “
“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.”
Namal Rajapaksa, the minister of project coordinating and monitoring, proposed that the committee transmit its conclusions on crypto and blockchain to the Cabinet of Acts, Rules, and Regulations.
Two of the committee’s eight members, Sandun Hapugoda of Mastercard and Sujeewa Mudalige of PricewaterhouseCoopers (PwC), represent worldwide fintech titans.
Traditional finance members include Rajeeva Bandaranaike, CEO of the Colombo Stock Exchange, and Dharmasri Kumarathunge, director of the Central Bank of Sri Lanka.
The President’s Council, Sri Lanka Computer Emergency Readiness Team (SLCERT), Department Of Government Information, Information and Communication Technology Agency (ICTA), and the President’s Council are among the remaining four members.
The committee will also review laws and regulations established by other countries to develop rules against anti-money laundering (AML), terror financing, and criminal activities, in support of this mission.
Between July 2020 and June 2021, a 706 percent increase in Central and Southern Asia and Oceania was reported by Cointelegraph. According to Chainalysis data, the value of transactions in the area totaled 14% ($572.5 billion), with India accounting for the greatest worldwide transaction value.
Sri Lanka’s central bank warned the public about the hazards of cryptocurrency investments in April, noting a lack of legal and regulatory redress.
The central bank, however, chose three banks for constructing a proof-of-concept for a shared Know Your Customer facility utilizing blockchain within a month after the notification was issued.