The Central Bank of Sri Lanka’s Warning
The Central Bank of Sri Lanka (CBSL) wants to bring your attention to the significant risks associated with cryptocurrency usage and investments. Cryptocurrency, also referred to as “crypto,” is a type of virtual currency generated by private entities, not governed by any country’s monetary authority. It’s essential to understand that these digital currencies are not regulated investment instruments, nor are they recognized as legal tender in Sri Lanka.
The Dangers of Crypto-Trading
Several entities actively promote crypto-trading as a profitable investment. However, recent complaints received by CBSL reveal that individuals have incurred substantial losses and fallen victim to financial scams through crypto-related schemes. It’s crucial to be aware of the risks and concerns posed by cryptocurrencies, as highlighted in CBSL’s press releases issued in 2018, 2021, and 2022.
Unregulated and Unprotected
Cryptocurrencies lack regulatory safeguards and are not considered an asset-class in Sri Lanka. These digital currencies operate through informal channels, contributing nothing to the national economy. Moreover, due to their unregulated nature, cryptocurrencies can contribute to the loss of valuable foreign currency for the country.
Beware of Financial Scams
The number of financial scams exploiting the promise of high returns from crypto-investments is on the rise. Individuals have fallen victim to deceitful schemes that manipulate them into investing money in fraudulent cryptocurrency projects. These scams bypass regulatory and legal protection mechanisms, resulting in financial losses for the victims.
CBSL’s Strong Advice: Protect Your Hard-Earned Money
CBSL strongly advises the public to exercise caution and refrain from investing or engaging in any cryptocurrency schemes offered through the internet, various media platforms, or directly by individuals. It is essential to understand that CBSL has not issued any licenses or authorized any individuals or businesses to operate cryptocurrency schemes, initial coin offerings (ICOs), cryptocurrency mining operations, cryptocurrency exchanges, deposit-taking, custody services, or any cryptocurrency investment advisory services.
DHPL Travels: Your Guide to Smart Investing
At DHPL Travels, we prioritize your financial well-being and security. We are committed to providing reliable information and advice to help you make informed investment decisions. Visit DHPL Travels for more insights into smart investing and protecting your assets.
Remember, safeguarding your hard-earned money is of utmost importance. Avoid falling for promises of quick returns and be wary of schemes that lack regulation and oversight. Trust in DHPL Travels to guide you towards safe and profitable investments.