{"id":11344,"date":"2023-04-06T20:26:13","date_gmt":"2023-04-06T20:26:13","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=11344"},"modified":"2023-04-06T20:26:14","modified_gmt":"2023-04-06T20:26:14","slug":"central-bank-of-sri-lanka-warns-of-significant-risks-in-using-and-investing-in-crypto","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11344","title":{"rendered":"Central Bank of Sri Lanka Warns of &#8216;Significant Risks&#8217; in Using and Investing in Crypto"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>Sri Lanka\u2019s central bank has issued a warning about \u201cthe significant risks associated with using and investing in cryptocurrency.\u201d The central bank reminded the public that \u201ccryptocurrencies are unregulated investment instruments which are not recognized as an asset class in Sri Lanka.\u201d<\/strong><\/p>\n<h2>Sri Lanka\u2019s Crypto Warning<\/h2>\n<p>The Central Bank of Sri Lanka (CBSL) issued a notice last week, warning the public of \u201cthe significant risks associated with using and investing in cryptocurrency.\u201d<\/p>\n<p>The Sri Lankan monetary authority explained that it recently received complaints showing that \u201cmembers of the public have incurred heavy losses on their crypto investments and in certain instances have also been subject to financial scams conducted through crypto-related schemes.\u201d<\/p>\n<p>Referencing its previous warnings from 2018 to 2022 about financial, operational, legal, and security risks related to cryptocurrency, the central bank stated, \u201cThese risks and concerns have already materialized with the recent failures of various global institutions engaged in cryptocurrency businesses, and the collapse and loss of value of some cryptocurrencies,\u201d emphasizing:<\/p>\n<p>The public is reminded that cryptocurrencies are unregulated investment instruments which are not recognized as an asset class in Sri Lanka. Further, cryptocurrencies are not considered as legal tender in Sri Lanka and have no regulatory safeguards relating to their usage in the country.<\/p>\n<p>On March 18, 2021, the central bank issued a set of regulations restricting the use of Electronic Fund Transfer Cards (EFTCs), including debit and credit cards, for payments related to virtual currency transactions. The CBSL warned that cryptocurrency operates through informal channels, providing no contribution to the national economy and posing a risk of losing valuable foreign currency for the country.<\/p>\n<p>Moreover, the central bank cautioned about the increasing number of financial scams promising high returns from crypto investments. \u201cThese scams include deceiving individuals and obtaining money from them with the promise of providing a high return by investing money in cryptocurrency, as well as deceiving individuals to invest in fraudulent cryptocurrency projects. Such scams circumvent traditional regulatory and legal protection mechanisms, resulting in individuals losing their hard-earned money,\u201d the CBSL described.<\/p>\n<p>The central bank continued:<\/p>\n<p>The public is also notified that CBSL has not issued any licence or authorized any individual or business to operate schemes involving cryptocurrency.<\/p>\n<p>Furthermore, the CBSL stressed that it \u201chas not authorized any initial coin offerings (ICOs) or any variant of it, cryptocurrency mining operations, cryptocurrency exchanges, deposit-taking or custody services related to cryptocurrency or any cryptocurrency investment advisory service.\u201d<\/p>\n<p>The notice concludes with the CBSL urging \u201cthose who are engaged in promoting and facilitating the promotion of investing and trading in cryptocurrency to refrain from such activities, considering the wide range of risks associated with cryptocurrency and the resulting hardships to the public, including financial losses.\u201d<\/p>\n<p><em><strong>What do you think about the crypto warning by Sri Lanka\u2019s central bank? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/central-bank-of-sri-lanka-warns-of-significant-risks-in-using-and-investing-in-crypto\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sri Lanka\u2019s central bank has issued a warning about \u201cthe significant risks associated with using and investing in cryptocurrency.\u201d The central bank reminded the public that \u201ccryptocurrencies are unregulated investment instruments which are not recognized as an asset class in Sri Lanka.\u201d Sri Lanka\u2019s Crypto Warning The Central Bank of Sri Lanka (CBSL) issued a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-11344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11344"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11344\/revisions"}],"predecessor-version":[{"id":11346,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11344\/revisions\/11346"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11345"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}