Sri Lanka establishes a commission to oversee crypto mining and blockchain implementation

The committee intends to provide a framework that is appropriate for Sri Lanka after analyzing foreign market rules. Sri Lanka has joined the global cryptocurrency adoption push by establishing a committee to investigate and deploy blockchain and cryptocurrency mining technology.

According to a letter published on Oct. 8 by Mohan Samaranayake, Sri Lanka’s director-general of government information, the authorities have accepted a recent proposal aimed at attracting investment in the country’s blockchain and cryptocurrency projects.

Sri Lankan authorities, according to Samaranayake, have recognized the necessity to create “an integrated system of digital banking, blockchain, and cryptocurrency mining technologies” in order to remain competitive with global partners and markets. He continued:

“This committee will be mandated to study the regulations and initiatives of other countries such as Dubai, Malaysia, Philippines, EU and Singapore, etc., and propose a suitable framework for Sri Lanka.”

The proposal was presented by Namal Rajapaksa, minister of project coordination and monitoring, and asks the committee to report to the Cabinet of Acts, Rules, and Regulations on its crypto and blockchain-related findings.

Two members of the committee, Sandun Hapugoda of Mastercard and Sujeewa Mudalige of PricewaterhouseCoopers (PwC), represent worldwide fintech heavyweights. Members from conventional finance include Rajeeva Bandaranaike, CEO of the Colombo Stock Exchange, and Dharmasri Kumarathunge, director of the Central Bank of Sri Lanka.

The other four members are drawn from a variety of national agencies, including the Sri Lanka Computer Emergency Readiness Team (SLCERT), the Department of Government Information, the Information and Communication Technology Agency (ICTA), and the President’s Council.

In addition to supporting this effort, the committee will examine other countries’ laws and regulations establishing restrictions against money laundering, terrorist funding, and criminal activity.

Between July 2020 and June 2021, a recent Cointelegraph study predicted a 706 percent increase in Central and Southern Asia and Oceania. According to Chainalysis statistics, the region’s transactions were worth 14% ($572.5 billion), with India accounting for the greatest worldwide transaction value.

Sri Lanka’s central bank published a public notice in April warning investors about the dangers connected with cryptocurrency investments, noting a lack of legal and regulatory remedies. However, less than a month following the announcement, the central bank announced the selection of three banks to build a proof-of-concept for a shared Know Your Customer facility using blockchain technology.

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