Sri Lanka warns public not to use cryptocurrencies amid economic upheaval as new PM imposes curfew
Central Bank of Sri Lankawarns against “largely unregulated” cryptocurrency market.
- Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards are not permitted to be used for virtual currency transactions.
- Announcement comes as Sri Lanka's new PM
Ranil Wickremesingheimposes curfew in western province of the country.
The Central Bank of
The public is also warned not to fall prey to various types of VC schemes offered through the Internet as well as other forms of media, the bank added.
The warning came as new Prime Minister Ranil Wickremesinghe on Wednesday imposed curfew in the Western Province with immediate effect. Security forces were directed to arrest people acting in a riotous manner and seize the lorries they were traveling in.
On July 9, braving similar forces, people took control of the President's house, his office and Prime Minister's official residence symbolically overtaking the government. The CBSL said that virtual currencies are largely unregulated digital representations of value that are issued by private entities and can be electronically traded.
"CBSL has not given any license or authorization to any entity or company to operate schemes involving VCs, including cryptocurrencies, and has not authorized any
Furthermore, Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards are not allowed for virtual currency transactions, it added. "Therefore, VCs are considered as unregulated financial instruments and have no regulatory oversight or safeguards relating to their usage in Sri Lanka," the bank said.
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