Central Bank of Sri Lanka warned of the risks of investing in cryptocurrencies – Bits Media

The Central Bank of Sri Lanka issued an official letter, in which he warned the country's citizens against rash investments in cryptocurrencies and warned about the risks, related to such investments.

The document notes, that buying cryptocurrencies, such as BTC, ETH or LTC, associated with significant risks of loss of funds, since these assets are not regulated and investors are not protected by law. In this case, it is emphasized, Whatever mining, Neither buying cryptocurrencies on exchanges are authorized by the regulator in Sri Lanka. Buying digital assets on exchanges can be regarded as violation of the country's foreign exchange laws.

The Central Bank of Sri Lanka also supported the usual rhetoric about that, that cryptocurrencies are often used to launder money and finance terrorism. Besides, High volatility of digital assets can expose the investor to risks and losses.

“Virtual currencies are not defined as an permitted category for investment according to the law on foreign currency from 2017 of the year. It is also forbidden to use debit and credit cards for payments, associated with digital currencies ", - emphasized in the document.

Recall, that last summer, the Sri Lanka regulator began to develop a platform based on blockchain for customer identification.