October 06, Colombo (LNW): Sri Lanka’s Financial Intelligence Unit (FIU), operating under the Central Bank, has launched a mandatory survey aimed at identifying individuals and businesses engaged in Virtual Asset Service Provider (VASP) activities.
The initiative comes as part of preparatory efforts ahead of the country’s third national evaluation of its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
The survey forms part of a broader public consultation process designed to map out the landscape of virtual asset-related services currently being offered in the country. It targets any persons or entities involved in business activities such as the exchange of virtual assets for fiat currency, the transfer or safekeeping of virtual assets, and the provision of financial services tied to virtual asset offerings or sales.
The Central Bank clarified that virtual assets—such as cryptocurrencies—are defined as digital representations of value that can be digitally traded, transferred, or used for investment purposes. These assets, however, do not include digital representations of fiat currency issued by the Central Bank itself.
While the use of virtual assets continues to grow globally, Sri Lanka maintains strict regulations on their use within its financial system. Under current foreign exchange laws, the use of cryptocurrencies or other virtual assets for payment transactions remains prohibited.
Nonetheless, activities related to virtual assets for investment or trading purposes, if conducted as a business, may fall under the scope of VASP classification and be subject to regulatory scrutiny.
The FIU’s effort to collect data on VASPs is expected to inform both domestic policy and international assessments, particularly as global watchdogs continue to tighten standards around digital finance and its potential links to money laundering and terrorist financing.
The Central Bank has encouraged individuals and businesses involved in virtual asset services to participate fully in the survey, noting that compliance will help enhance regulatory clarity and bolster the country’s readiness for the upcoming AML/CFT evaluation.
