Sri Lanka, July 28 -- Users in Sri Lanka currently have access to digital representations of value that can be traded, transferred, or used for payment or investment purposes in digital forms such as 'crypto' currencies, through informal online platforms via offshore exchanges and peer-to-peer transactions.

Since these platforms operate completely outside the domestic regulatory framework, it is observed that Virtual Asset Service Providers operate without basic compliance obligations, reporting standards, or registration requirements for supervision.

Therefore, considering the risk of financial crimes occurring within Sri Lanka's financial system, the need to establish a regulatory framework and a regulatory body for virtual assets and...