eZCash and mCash investigate fraudulent activities, also focusing on crypto scams.

The Cabinet has approved taking strict legal action against individuals who use money transfer systems such as eZCash and mCash for drug trafficking and organized crime. Relevant authorities have observed that criminals often have the opportunity to conduct secret financial transactions through these digital financial platforms without revealing their identity.

Previously, the Cabinet had approved the appointment of a special committee chaired by the Secretary to the Ministry of Public Security and Parliamentary Affairs to recommend measures to control such illegal activities. The committee has now submitted its proposals, which include a recommendation to establish a new data system by integrating the Central Bank of Sri Lanka, the Sri Lanka Police, and the Department for Registration of Persons. Through this integrated data system, the government expects to prevent illegal financial activities and to swiftly identify criminals and enforce the law against them.

Meanwhile, Member of Parliament Ravi Karunanayake today strongly questioned the Minister of Finance in Parliament regarding the regulatory weaknesses in Sri Lanka concerning digital assets and cryptocurrency transactions. The MP raised these points based on an ongoing investigation into a recent crypto fraud exceeding LKR 290 million and an observation made by the Chief Magistrate of Colombo that the country's money is constantly flowing abroad due to existing legal loopholes.

Mr. Karunanayake also recalled the statement made by the Governor of the Central Bank on January 23, 2025, when he brought this issue before Parliament, that crypto transactions are "neither legal nor illegal." He requested clarification on the government's current policy regarding digital asset transactions and inquired about the measures taken to monitor these transactions since early 2025. Furthermore, the MP drew the government's attention to the negative impact of capital outflow from the country through digital platforms like Binance due to the lack of a specific legal framework.

He also questioned the House about the methodology for taxing profits earned through crypto transactions and the mechanisms for monitoring transaction volumes that occurred in 2023, 2024, and 2025. Additionally, he inquired about the coordination between the Central Bank of Sri Lanka, the Financial Intelligence Unit, and the Criminal Investigation Department to prevent financial fraud and money laundering occurring through such platforms.

Mr. Karunanayake also sought clarification from the government on how it plans to work in parallel with international-level countries such as India, Singapore, Thailand, and the United Arab Emirates regarding the process of regulating digital assets and how it intends to achieve the relevant standards.