By Shelly Melancon (Switzerland)
On Monday, Sri Lankan Monetary Authority’s Director, Ajith Nivard Cabraal, was given a report summarizing the findings of a recently concluded KYC, proof-of-concept program. Sri Lanka’s banking system, popularly known as the CBSL, collaborated on the initiative with three partners who conceptualized the Blockchain-based KYC service model.
CBSL and ten local and global financial institutions, notably; Amana Financial institution, Bank of Ceylon, Commercial Bank of Ceylon, Cargills Financial institution, Hatton National Bank, DFCC Bank, National Development Bank, HSBC, People’s Bank, and Standard Chartered, examined the KYC platform as well. The project began in July 2019 and was finished on June 10, 2021.
“As part of a nationwide initiative, we requested software businesses to construct a shared KYC proof of concept for free. The reaction to this initiative has been quite encouraging, both regionally and abroad, and we are pleased to announce that we have finalized the selection of qualified applications to commence implementation promptly,” Central Bank Head Transactions and Accounts D. Kumaratunge added.
Proposal Of A Crypto Review Panel
The initiative was a component of a broader Sri Lankan administration program dubbed Vistas of Prosperity and Splendor, which was implemented following the current national Regulatory Framework. As disclosed by Crypto Daily UK, Minister of Project Coordination and Tracking Namal Rajapaksa proposed the establishment of a new “Crypto Review panel” to oversee the investigation of the feasibility of incorporating blockchain technology and crypto mining into Sri Lanka’s plans to create a more digital society.
Also read:Sri Lanka, like many other nations worldwide, has faced several financial setbacks as a result of the current global epidemic. Official figures show that the country is now recovering from its 16.4 percent GDP growth in the second quarter of 2020. Nevertheless, it has lost approximately $400 million in revenue from the tourist sector and $1.3 billion in revenue from overseas jobs as a result of the pandemic.
Economic Concerns Boost Interest In Crypto
Current financial concern in Sri Lanka seems to have fueled the country’s interest in crypto and the administration’s fresh research into KYC technology. In 2021, the Sri Lankan Rupee’s activity on the peer-to-peer platform Paxful skyrocketed. The country’s surge in digital currency transactions and investment prompted the Sri Lankan authorities to warn people about the risks associated with virtual currency trading.
Sri Lanka’s government’s crypto-focused investigation mirrors the legislative activities of other nations worldwide. Many in the US blockchain business are concerned about a tax provision in US Vice President Joe Biden’s delayed Infrastructure bill. Additionally, as Reuters revealed in July, the EU proposed the formation of a new body to prevent and detect money laundering and boost Bitcoin transparency.
The CBSL has strengthened its supervisory framework in recent years, following its inclusion on the G7’s international Financial Action Task Force, or FATF “Grey List” in 2016 for non-compliance in four areas: global collaboration, oversight, legal entities, and accommodations, and aimed economic sanctions against proliferation. In October 2019, the nation was removed from FAFT’s grey list.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.