Sri Lanka joined the global crypto adoption drive after forming a committee to explore and implement blockchain and crypto mining technology.
A letter shared on October 8 by Mohan Samarnayake, director general of Sri Lanka’s government information department, said the authorities had approved a recent proposal aimed at attracting investment in the country’s blockchain and cryptocurrency initiatives.
According to Samarnaik, the Sri Lankan authorities have identified the need to develop “an integrated system of digital banking, blockchain and cryptocurrency mining technology” as a way to stay on par with global partners and international markets. He added:
“The committee will be compelled to study the regulations and initiatives of other countries such as Dubai, Malaysia, the Philippines, the EU and Singapore and to propose a suitable structure for Sri Lanka.”
Project Coordination and Monitoring Minister Namal Rajapakse made the proposal, for which the committee would have to report its crypto and blockchain-related results to the Cabinet of Laws, Rules and Regulations.
Two of the eight members of the committee represent the international fintech giants, including MasterCard’s Sandun Hapugoda and PricewaterhouseCoopers (PWC) Sujiwa Mudalige. Members of the Traditional Funding include Rajiv Bandarnayake, CEO of the Colombo Stock Exchange, and Dharmashree Kumarathune, Director of the Central Bank of Sri Lanka.
The remaining four members represent various national authorities, including the Sri Lanka Computer Emergency Readiness Team (SLCERT), the Government Information Department, the Information and Communication Technology Agency (ICTA) and the Council of the President.
In support of this initiative, the Committee will monitor the laws and regulations enacted by other countries to establish rules against money laundering (AML), terrorist financing and criminal activity.
Related: Crypto transactions in Asia grew by 706% as institutional adoption increased – Chinalysis
A recent Cointelegraph report showed a 606% increase in Central and South Asia and Oceania between July 2020 and June 2021. The value of transactions in the region is 14% ($ 572.5 billion), representing India as the highest global transaction value, based on data shared by ChanelLysis.
In April, the Central Bank of Sri Lanka issued a public notice against risks related to cryptocurrency investing, citing a lack of legal or regulatory avenues. However, just one month after the notice, the central bank listed three banks using a blockchain to develop a proof-of-concept for the convenience of your customers.