📈 Sri Lanka Cabinet Approves Legal Framework to Regulate Crypto & Virtual Assets

• Overview: The Cabinet has approved steps to introduce legislation regulating Virtual Asset Service Providers (VASPs), bringing cryptocurrency and digital asset activities under a formal legal regime. • Regulatory Structure: The Securities and Exchange Commission of Sri Lanka (SEC) will be designated as the primary regulatory authority for VASPs, operating alongside the Central Bank of Sri Lanka (CBSL), Financial Intelligence Unit (FIU), and Inland Revenue Department (IRD). • Driver & Objectives: Addresses regulatory gaps from Sri Lankans using offshore crypto platforms and peer-to-peer exchanges. The move aims to mitigate risks surrounding financial crimes, money laundering, and terrorist financing. • Governance: Proposal submitted by President Anura Kumara Dissanayake (Digital Economy) based on recommendations from a VASP sub-committee under the AML/CFT policy guidance.