The crypto industry seems to have made significant inroads into a variety of economic sectors and regions around the world. However, it seems that many governments are concerned about the latest digital assets and have taken steps to prevent their people from engaging in them. The Central Bank of Sri Lanka, or CBSL, is the most recent government body to take this step.
The CBSL issued a public alert on April 9th, warning that investing in these increasingly common assets is risky. According to the CBSL, there are no legal rules protecting cryptos in Sri Lanka, which may be dangerous for investors.
More anti-crypto arguments have been made.
The note went on to say that people who get into trouble when investing in these assets will be unable to recover their funds in Sri Lanka due to a lack of legal support, and that crypto prices are notoriously volatile. Terrorists and money launderers, according to the top bank, may use the digital coins for illegal purposes.
People who buy digital tokens on foreign exchanges could be violating the rule, according to the central bank, since there are no legal crypto exchanges in Sri Lanka.
Similar actions have been taken by other governments.
Notably, Sri Lanka isn’t the only government attempting to stifle the crypto ecosystem’s development. Many other governments around the world have made significant attempts to achieve the same aim. Despite this, the ecosystem continues to develop rapidly, attracting billions of dollars of investments from some of the world’s most prestigious investment companies and funds.
Because of the growing popularity and global adoption of cryptocurrencies such as Bitcoin, policymakers have little choice but to embrace reality and develop effective regulatory policies to regulate the industry rather than attempting to halt its development.