Buying and selling cryptocurrencies could soon come under new rules after the Cabinet approved plans to introduce laws for virtual assets and the businesses that provide related services.
Today, many people buy and sell cryptocurrencies through online platforms, peer-to-peer exchanges and direct deals. However, there are no local laws to regulate these activities.
As a result, companies that offer virtual asset services can operate without registering or reporting to local authorities.
The government says this increases the risk of money laundering, terrorist financing and other financial crimes.
To address this, the government has formed a sub-committee led by the Deputy Minister of Digital Economy.
Meanwhile, officials from the Central Bank, the Financial Intelligence Unit and the Inland Revenue Department are working together to develop the new system.
The committee also recommended appointing the Securities and Exchange Commission (SEC) as the regulator for virtual assets and virtual asset service providers (VASPs).
Following that, the Cabinet approved the proposal.
President Anura Kumara Dissanayake, as Minister of Digital Economy, presented the proposal to introduce the new laws. He also proposed a plan to put the new system in place.
Once the new laws take effect, businesses dealing with virtual assets must follow local rules. In turn, the government expects the new system to strengthen the financial sector and reduce illegal financial activity.
Cabinet Decisions Economic & Regulation
Last modified: July 28, 2026
