What is Sri Lanka doing to invest in blockchain?

Sri Lanka, an island nation in South Asia, has become the latest country to jump into the global crypto majority after forming a committee to study crypto and blockchain technology.

Must Read: Why These 11 Countries Don’t Tax Bitcoin Gains

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aims to attract foreign investment in crypto

Recently this month, Sri Lankan authorities continued their proposal to explore and implement crypto mining technologies in the country.

Related Reading: Which 10 global holdings accept Bitcoin as a payment option?

A look at the Sri Lanka crypto mining committee

Appointed by the Sri Lankan government, the committee consists of eight members, some of whom are fintech experts and the rest are officials from the banking industry.

Members will review the rules and regulations adopted by other countries that support cryptocurrencies, such as Dubai, Philippines, Singapore, Malaysia, and the EU.

Additionally, the committee will explore ways to mitigate risks related to crypto abuse, terrorist financing, and other fraud and criminal activities on the dark web.

The recommendations and findings will be reported to the Council of Ministers.

Read: How crypto assets are handled for tax purposes in New Zealand

Other Asian countries are considering exploring digital currencies

Apart from Sri Lanka, other south Asian countries such as India, Vietnam, and Pakistan are also considering allowing the use of cryptocurrencies to become widespread.

It is pointed out that El Salvador, a Central American country, officially recognizes Bitcoin as a legal tender.

You Can’t Miss Reading: Bitcoin as Legal Tender: El Salvador is the First Nation to Support Cryptocurrency

Sri Lanka central bank wary of crypto trading

The move to form a committee to explore the crypto space was made despite the CBSL’s (Sri Lanka Central Bank) warning in April this year about the risks surrounding crypto trading and investment.

Related Reading: Binance and Houbi halt operations in China after crypto ban

It is stated that the country’s central bank maintains a cautious approach towards cryptocurrencies.

As a result

To globalize and expand its digital economy, Sri Lankan authorities are trying to identify opportunities to be on par with other countries when it comes to the crypto space.

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