- Sri Lankan regulators used the June 15 forum to assess crypto market risks.
- The FIU has begun mapping VASPs ahead of planned oversight in 2026 and 2027.
- CBSL says crypto remains unlicensed as AML/CFT pressure shapes new rules.
Sri Lanka moved nearer to formal virtual asset oversight after the Ministry of Digital Economy and the Securities and Exchange Commission hosted a June 15 awareness forum. The forum, titled “Collaborating for a Secure Digital Future: Virtual Assets,” gathered policymakers, regulators, and industry experts to examine fast-growing market risks.
The SEC-MoDE session marked a shift from repeated public warnings toward a structured Crypto Regulation framework. Discussions focused on cryptocurrency trading, offshore platforms, peer-to-peer markets, custody, token issuance, and financial crime controls linked to digital asset services.
SEC-MoDE Forum Turns Warnings Into Crypto Oversight Plans
According to local media reports, Deputy Minister of Digital Economy Eranga Weeraratne presided over the session, which featured briefings from Nisal Chandrasekara and Dinindu Thewarathanthri. They outlined three core areas: the local virtual asset market, global regulatory models, and compliance tools needed to reduce financial crime risks.
Participants also reviewed how virtual assets are created, stored, traded, and used across cross-border payments, tokenized assets, investment products, and startup financing. The discussion placed Sri Lanka’s informal digital asset activity within a wider policy question: how to supervise operators without legitimizing weak market practices.
The awareness drive followed earlier work inside the country’s anti-money laundering system. In January, the Financial Intelligence Unit of the Central Bank of Sri Lanka held the first meeting of a subcommittee on virtual asset service providers. That meeting, held under the AML/CFT National Coordinating Committee, examined how VASPs could be brought under a comprehensive regulatory framework.
FIU Survey Maps Crypto Operators Ahead of AML Rules
Besides, in March, the FIU launched a mandatory information survey for entities offering virtual asset services. The survey covered crypto-to-fiat exchange, virtual asset exchange, transfer services, custody, and financial services linked to token sales or issuance.
The move showed that regulators are trying to identify active operators before placing them under supervision. Key areas under review include registration, know-your-customer checks, anti-money laundering duties, reporting standards, and a phased roadmap for 2026 and 2027.
The Central Bank has repeatedly warned that cryptocurrencies are not legal tender and that no entity has been licensed to engage in exchanges, mining, custody, advisory services, or ICOs. Authorities have also cited fraud, volatility, foreign exchange risks, and limited legal protection.
The timing matters as Sri Lanka is preparing for an Asia/Pacific Group mutual evaluation of its AML/CFT framework. Under global standards, countries must assess virtual asset risks, register or license providers, and supervise them for money laundering and terrorist financing controls.
Related: Lummis’ CLARITY Act Sets $150M Crypto Crime Fight
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