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Central Bank Of Sri Lanka Warns Citizens Against Trading Crypto

Investing and trading in digital assets, even though new, is a kind of investment that has seen massive acceptance over the last few years. The reason for this is not far-fetched as the major and minor digital assets have seen massive profits in the last few years. To put into perspective, Bitcoin saw a massive bull run from last year up till this moment to place as one of the few investments with the best ROI last year.

But while that has pushed more people to enter the market and reap the rewards, some entities are concerned that traders might be on the long path to regret to regret if they enter the crypto market. Such is the concern that has been shown by the central bank in Sri Lanka.

The bank wants investors to know the risks before trading

With the way the digital assets have blown up since the start of the year, the premier bank in Sri Lanka has warned investors of the risks they would be undergoing if they choose to pool their funds in the sector. The statement released by the bank in a secular way pointed out three types of activities that have been flagged.

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Firstly, the bank talked about the risks associated with mining digital assets before talking about initial coin offerings. Lastly, the bank mentioned trading crypto using crypto exchanges. The bank warned that the trades listed above comes with some trivial risks that most investors do not understand.

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With the country not yet having a measure in place to check crypto activities, it has pointed out four areas that the investors should be worried about. The bank mentioned that since there was no regulation in place to check the activities, there was no rule in place regarding settlements of issues.

The bank is working on a national blockchain project

The bank also talked about the increasing lack of trust in trading digital assets, which would, in turn, open traders to record massive amounts of losses. The third reason being the most important, the bank mentioned that malicious entities have been using digital assets as a tool to aid their malicious activities.

This is not surprising, judging by the increase in the number of illegal activities carried out using digital assets. The last source of concern of the bank was partly related to traders and investors flouting the Foreign Exchange Act in the country.

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Despite the country advising its citizens against trading digital assets, it has confirmed that it is using blockchain technology to aid the way they share data amongst sectors of the economy. Notably, the project is still under testing.


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Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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