Sri Lanka has approved a proposal to designate the Securities and Exchange Commission (SEC) as the official regulatory authority for virtual assets.
The decision marks a significant step in formalizing the country's oversight framework for digital currencies, moving beyond previous ad-hoc guidance to establish a clear institutional mandate.
The approval places the SEC in charge of regulating crypto activities within the island nation.
This development follows earlier government statements clarifying that income derived from cryptocurrency transactions is subject to taxation, even though digital assets do not hold legal tender status.
By assigning regulatory responsibility to the SEC, Colombo aims to bring greater clarity and structure to the market.
For investors and businesses operating in or with Sri Lanka, the designation provides a defined regulatory path.