Crypto fraud storm faces regulatory overdrive By Bandula Sirimanna View(s): View(s):The Government has taken significant steps to regulate crypto currency, primarily to address money laundering and financial crimes ahead of a 2026 international mutual evaluation by the Asia-Pacific Group (APG) on money laundering, Finance Ministry sources confirmed. Banks are prohibited from processing payments related to crypto currency, ensuring that local fiat currency cannot be directly converted to crypto through formal banking channels. 290 million, which was allegedly laundered through crypto currency transactions on platforms like Binance. Nineteen suspects are accused of exploiting loopholes in foreign exchange laws to convert public funds into crypto currency, resulting in significant capital flight from the country. The Colombo Chief Magistrate has directed the Central Bank and the CID to monitor and raise awareness of the risks of using unauthorized crypto currency platforms.

Source: Sunday Times March 21, 2026 22:18 UTC