Sri Lanka Designates Securities and Exchange Commission as Crypto Regulator

Sri Lanka’s Cabinet of Ministers approved a proposal to place the regulation of virtual assets and service providers (VASPs) under the jurisdiction of the Securities and Exchange Commission (SEC). A sub‑committee chaired by the Deputy Minister of Digital Economy was formed to oversee the rollout, coordinating with the Central Bank, the Financial Intelligence Unit and the Inland Revenue Department. The move aims to address risks such as money‑laundering and terrorist financing by bringing cryptocurrency exchanges, peer‑to‑peer platforms and other crypto‑related activities into a formal legal framework.

The regulatory shift is expected to give investors greater confidence, reduce fraud and market manipulation, and create a clearer pathway for legitimate crypto businesses, potentially attracting foreign investment to Sri Lanka’s emerging fintech sector.