TL; DR Breakdown
- Sri Lankan Central Bank has released a warning against investing in cryptos.
- Many other governments have been doing so without much success.
The crypto market seems to have been very successful in making in-roads in various economic sectors and numerous regions across the world. However, it appears that a lot of governments are wary of the new digital assets and they have taken it upon themselves to attempt to discourage their citizens from investing in them. The latest government authority to pull this move is the Central Bank of Sri Lanka, CBSL.
In a recent public warning released on the 9th,of April, the CBSL warns that investing in these increasingly prevalent assets is risky. Apparently, there are no legal regulations covering cryptos in Sri Lanka, something that the CBSL says is potentially risky for investors.
More anti-crypto reasons cited
Going on, the notice made it clear that people who run into trouble while investing in these assets would lack proper legal support to reclaim their investments in Sri Lanka, adding that crypto prices have been known to be very volatile. Also, according to the top bank, terrorists and money launderers could use the digital coins for illegal activities.
The central bank went on to note that since there are no legal crypto exchanges based in Sri Lanka, people who buy the digital tokens on exchanges based abroad could be breaking the law.
Other governments have done the same
Notably, Sri Lanka’s isn’t the only government to try to stifle the grow of the crypto ecosystem. Numerous other governments across the world have made huge efforts with the same goal. Still, the ecosystem continues to expand exponentially, even attracting billions of dollars in investments from some of the largest investment firms and funds in the world.
The increasing popularity and global acceptance of cryptocurrencies like Bitcoin have left the governments with no better option than to accept the reality and instead draw up appropriate regulatory policies to govern the industry as opposed to continuing efforts to halt its growth.