Southern Asian country Sri Lanka has created a licensed body to oversee distributed ledger technology (DLT) and crypto mining implementation in the region. The group will also be responsible for creating an infrastructure for the proposed implementation after researching policies adopted by foreign markets.
Sri Lanka is aiming to join the global crypto adoption movement. A Friday circular shared by the country’s Director General of Government Information Mohan Samaranayake revealed that the Sri Lankan authorities have assented to a proposal that is geared toward attracting investments into the country’s DLT and crypto sectors.
Sri Lankan Authorities to Develop Infrastructure for DLT and Crypto Mining
According to the director-general, the government has highlighted the need for the implementation of an integrated infrastructure that centers around digital banking, DLT and cryptocurrency mining. This will help the country to measure up with the foreign markets in terms of DLT and cryptocurrency adoption. Director Samranayake said that the group will study the policies and projects of countries such as Dubai, Malaysia and more, and suggest a suitable infrastructure for Sri Lanka.
The said proposal was submitted by the Minister of Project Coordinating and Monitoring, Namal Rajapaksa. Per the proposal, the group will submit the findings from its research to the Cabinet of Acts, Rules and Regulations. The eight-man group consists of two members representing foreign fintech firms.
Other members include the CEO of Colombo Stock Exchange Rajeeva Bandaranaike and a representative from Sri Lanka’s central bank. The rest are from national agencies in the country. The group will also assess policies of other countries surrounding Anti-money Laundering (AML), terror financing to adopt the same in Sri Lanka.
Crypto Transactions in Asia Surge by 706%, Chainalysis Report Reveals
Meanwhile, findings from Chainalysis’ recent report on the volume of crypto transactions in different regions reveal that the region of Asia witnessed a 706% increase in its transaction volume between July 2020 and June 2021. According to Chainalysis’ report, Asian investors or crypto enthusiasts traded more than $570 billion in cryptocurrencies within the same period accounting for 14% of the transaction value globally. Although the report did not say anything about Sri Lanka, it mentioned that India was the highest in terms of crypto transactions traded.
Earlier in April, the Sri Lankan central bank had highlighted the negative implications of cryptocurrencies in a circular, citing the absence of policies. Interestingly, the central bank endorsed an initiative the following month for the development of a KYC infrastructure powered by DLT technology. The latest development is also a giant stride for both the bank and Sri Lankan authorities as it moves toward embracing cryptocurrencies and DLT technology.