Sri Lanka’s central bank warns public against risks of crypto investment

Sri Lanka’s central bank has taken the 2021 crypto bull market as an opportune time to warn the public against the risks associated with cryptocurrency investments.

In a public notice published on Friday, the Central Bank of Sri Lanka flagged three types of crypto activities: cryptocurrency mining, investment in initial coin offerings and trading via cryptocurrency exchanges. All these, the CBSL warns, expose investors to significant risks. As there are no regulatory safeguards in place for crypto activities in Sri Lanka, the institution has identified four main areas of concern for retail investors getting into cryptocurrency.