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The Central Bank of Sri Lanka says that crypto asset companies have not received any permits in the country. The statement was issued recently and denied any kind of license or authorization for companies operating in the crypto market.

The Sri Lankan CB’s notice was released last week and talked about the increased adoption of digital currencies in the country, explaining that they have no approved regulation.

“Virtual currencies are digital representations of value largely unregulated that are issued by private entities and can be traded electronically.”

The announcement emphasizes that no crypto asset “schemes” have been authorized by the government through licensing. The country’s CB clarifies that digital currencies remain without any legislative backing.

“CBSL has not granted any license or authorization to any entity or company to operate schemes involving virtual currencies, including cryptocurrencies.”

In addition to talking about crypto assets, the statement cites exchanges and mining activity, which have also not been licensed by the country currently suffering a severe economic and political crisis.

Even transactions between fiat currencies and crypto assets are still prohibited in the country. As such, the population cannot use cash and/or credit cards to buy digital currencies.

“Electronic Funds Transfer Cards (EFTCs), such as debit cards and credit cards, cannot be used for payments related to virtual currency transactions.”

Although it has stated that it has not regulated the crypto market, Sri Lanka set up a committee in late 2021 to assess the impacts of crypto assets and blockchain technology on the economy.