Sri Lanka will regulate cryptocurrency and virtual asset trading for the first time following Cabinet approval of a proposal to establish a comprehensive legal framework for digital assets and service providers.
The regulatory initiative, presented by President Anura Kumara Dissanayake in his capacity as Minister of Digital Economy, was sanctioned on Tuesday to bring informal online trading under direct state oversight.
The government move aims to eliminate a critical supervisory gap created by local investors accessing digital assets through unregulated offshore exchanges and peer-to-peer platforms.
Under the recommendations of a special sub-committee chaired by the Deputy Minister of Digital Economy, the Securities and Exchange Commission of Sri Lanka will be appointed as the primary regulatory authority for virtual asset service providers.
To mitigate risks associated with money laundering and terrorism financing, the regulatory body will operate within a joint supervisory network alongside the Central Bank of Sri Lanka, the Financial Intelligence Unit, and the Department of Inland Revenue.
The introduction of mandatory registration, reporting standards, and compliance obligations will formally integrate virtual assets into the national financial architecture while establishing tax monitoring mechanisms.
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