Sri Lanka joins the global crypto adoption drive after setting up a committee for exploring and implementing blockchain and crypto mining technologies.

A letter shared on Oct. eight by Sri Lanka'due south director general of government information, Mohan Samaranayake, shows that the government take approved a contempo proposal that aims to attract investments in the country'south blockchain and cryptocurrency initiatives.

Co-ordinate to Samaranayake, the Sri Lankan authorities take identified the demand to develop "an integrated system of digital banking, blockchain and cryptocurrency mining technology" equally a means to stay on par with global partners and international markets. He added:

"This committee will be mandated to study the regulations and initiatives of other countries such as Dubai, Malaysia, Philippines, European union and Singapore, etc., and propose a suitable framework for Sri Lanka."

The proposal was fabricated by Namal Rajapaksa, minister of projection analogous and monitoring, which requires the commission to report its crypto and blockchain-related findings to the Cabinet of Acts, Rules and Regulations.

Out of the 8 members in the commission, 2 members correspond international fintech giants including Mastercard's Sandun Hapugoda and PricewaterhouseCoopers' (PwC) Sujeewa Mudalige. Members from traditional finance include Colombo Stock Exchange CEO Rajeeva Bandaranaike and the Primal Banking company of Sri Lanka director Dharmasri Kumarathunge.

The remaining four members represent various national government including Sri Lanka Estimator Emergency Readiness Team (SLCERT), Section Of Regime Data, Information and Communication Technology Bureau (ICTA) and the President's Quango.

Supporting this initiative, the committee will too monitor laws and regulations implemented by other nations to establish rules against Anti-Money Laundering (AML), terror financing and criminal activities.

Related: Crypto transactions surge 706% in Asia equally institutional adoption grows — Chainalysis

A recent Cointelegraph report highlighted a 706% surge in Primal and Southern Asia and Oceania between July 2022 and June 2022. Based on information shared by Chainalysis, the value of the transactions in the region amounted to fourteen% ($572.five billion), with India representing the highest global transaction value.

Back in April, Sri Lanka'south central banking company issued a public notice confronting the risks associated with cryptocurrency investments, citing a lack of legal or regulatory recourse. However, just a month after the detect, the central banking company shortlisted 3 banks for developing a proof-of-concept for a shared Know Your Customer facility using blockchain.