Sri Lankan government appoints committee to assess crypto mining and blockchain technology
Sri Lanka has become the latest country to join the global crypto adoption bandwagon after it announced setting up a committee to study blockchain and crypto mining technologies.
The Director-General of Sri Lankan Information Ministry, Mohan Samaranayake, has shared a letter on October 8 stating that the authorities have approved a recent proposal that would attract investments in the country’s crypto industries.
According to Samaranayake, the Sri Lankan government has identified the need for developing “an integrated system of digital banking, crypto mining and blockchain technology.” The authorities have said the three crypto technologies are “a means to stay at par with international markets.”
This committee has been prescribed to study initiatives and regulations of countries like the Philippines, Dubai, Singapore, EU and Malaysia in order to frame a suitable framework for Sri Lanka.
The crypto proposal has been drafted by Namal Rajapaksa, Sri Lanka’s Minister of Project Coordinating and Monitoring. The committee would also report its blockchain and crypto-related findings to the Cabinet of Acts, Rules and Regulations.
Out of the 8 members in the crypto committee, 2 represent international fintech stalwarts, including PricewaterhouseCoopers’ (PwC) Sujeewa Mudalige and Mastercard’s Sandun Hapugoda. Other members from traditional finances include Sri Lankan Central Bank Director Dharmasri Kumarathunge and Colombo Stock Exchange CEO, Rajeeva Bandaranaike.
The other four members are from several national authorities, including the Department Of Government Information, Information and Communication Technology Agency (ICTA) , President’s Council and Sri Lanka Computer Emergency Readiness Team (SLCERT).
Along with supporting the initiative, the crypto committee would also monitor laws and regulations that have been implemented by other nations for establishing rules against terror financing, Anti-Money Laundering (AML), and criminal activities.
Back in April, Sri Lankan Central Bank had issued a public notice against the risks associated with crypto investments, citing the scarce legal, regulatory recourse.
However, after only one month following the notice, the central bank had shortlisted three banks to develop a proof-of-concept for a Know Your Customer facility using the blockchain technology.