Cen­tral Bank...

Daily Mirror (Sri Lanka) - - HEALTHCARE -

Due to the ab­sence of a cen­tral­ized au­thor­ity, such as a cen­tral bank, to guar­an­tee the value of the cur­rency and reg­u­late trans­ac­tions, there is no re­course in the event of any user or trans­ac­tion-re­lated is­sues or dis­putes. The value of vir­tual cur­ren­cies is de­pen­dent on spec­u­la­tion and is not backed by an un­der­ly­ing as­set or a reg­u­la­tory frame­work. Due to this, vir­tual cur­ren­cies may demon­strate ma­jor volatil­ity. Sim­i­larly, there ap­pears to be a high prob­a­bil­ity of vir­tual cur­ren­cies be­ing used in il­le­gal ac­tiv­i­ties.

Fur­ther, though un­in­ten­tional, their usage could amount to breaches of anti-money laun­der­ing and com­bat­ing the fi­nanc­ing of ter­ror­ism (AML/CFT) laws.

There­fore, cryp­tocur­ren­cies, in the present form, may pose sig­nif­i­cant risks in terms of fi­nan­cial, op­er­a­tional, le­gal, cus­tomer pro­tec­tion and se­cu­ri­tyre­lated risks to their users as well as to the econ­omy.

Newspapers in English

Newspapers from Sri Lanka

© PressReader. All rights reserved.