Sri Lanka, July 30 -- Sri Lanka approved a proposal to designate the Securities and Exchange Commission as the official regulator for virtual assets and virtual asset service providers, bringing crypto trading and digital asset platforms under formal oversight.

The cabinet of ministers greenlit the decision following a submission by the president in the capacity of minister of digital economy, stemming from recommendations made by a specialised sub-committee under the national coordination committee for anti-money laundering and countering the financing of terrorism.

Retail investors and traders previously relied heavily on offshore platforms and peer-to-peer channels to trade cryptocurrencies and digital assets.

Cabinet spokesman Nali...