Bitcoin and cryptocurrency are gaining popularity around the world, including in Sri Lanka. For those in Sri Lanka looking to get started with bitcoin, here is a brief overview of some of the options available to buy bitcoin locally, once we go through crypto regulations in Sri Lanka.
What you'll learn 👉
Crypto Regulations in Sri Lanka
In Sri Lanka, cryptocurrencies are not officially recognized as a legitimate asset class and are viewed as unregulated investment tools. The Central Bank of Sri Lanka (CBSL) has cautioned the public about using cryptocurrencies due to the absence of regulatory protections and the high risks involved. Key aspects of Sri Lanka’s stance on cryptocurrency regulations include:
Ban on Pyramid Schemes: Under Section 83(C) of the Banking Act No. 30 of 1988, pyramid schemes are illegal in Sri Lanka. Violators can face up to 3 years in prison or a fine of up to LKR 1,000,000.
Emphasis on KYC and AML Regulations: Strengthening Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations is essential for maintaining market integrity and adhering to tax regulations.
Restrictions on Electronic Fund Transfer Cards: The use of Electronic Fund Transfer Cards (EFTCs), including debit and credit cards, for cryptocurrency transactions is prohibited.
Regulations on ICOs and Mining: The CBSL has not granted any licenses or authorization for conducting Initial Coin Offerings (ICOs), cryptocurrency mining, exchanges, deposit-taking, or custody services related to cryptocurrencies.
Warning on Investment Risks: The CBSL has alerted the public to the substantial risks of investing in cryptocurrencies, highlighting their largely unregulated nature and potential for financial loss.
Despite these regulations and warnings, there have been instances of Sri Lankans falling victim to fraudulent cryptocurrency schemes, prompting the CBSL to consider criminal action in some cases.
Easiest and cheapest ways to buy crypto in Sri Lanka
Getting bitcoins in Sri Lanka is not an easy task as not all popular crypto exchanges are available to Sri Lanka citizens. This is a current list of bitcoin exchanges that allow users from Sri Lanka to buy crypto. They all support buying crypto with credit/debit cards but some of them offer other payment methods as well.
👛 Ease of Use – Medium 👛 Fees – Low 👛 Verification – 1 Day 👛 Reputation – Trusted 👛 Supported fiat – USD, EUR, GBP, AUD, RUB
Over 30 million users worldwide and more than $15 billion in daily trading volume make Binance the world’s largest centralized cryptocurrencies exchange. Originally launched in 2017 in Hong Kong, the platform is still unregulated, it quickly became the most used exchange on the market. Binance is supported in 60+ countries (excluding the U.S).
On Binance, you can buy, sell, and trade a large number of cryptos with low fees. Two Factor Authentication, cold storage, and multi-sig wallets provide Binance users excellent security. It is considered one of the most secure cryptocurrencies exchange in the crypto sphere. Binance supports spot trading, margin trading, P2P trading, futures, earn (locked savings, fixed savings, yield farming, and DeFi staking), mining, and staking pools. You can trade more than 350 cryptos and over 1300 trading pairs.
⚡️ Deposit fees: Free ⚡️ Withdrawal fees: Vary from crypto to crypto ⚡️ Trading fees: 0.1% ⚡️ Payment Methods: Debit Card, Credit Card, SWIFT, Bank Transfer (SEPA), and more ⚡️ Supported fiat: USD, EUR, GBP, AUD, RUB, and 15+ more
Low fees High liquidity Lite and Pro version 350+ cryptos and 20+ fiat currencies
👛 Ease of Use – Easy 👛 Fees – High 👛 Verification – 1 Day 👛 Reputation – Trusted 👛 Supported fiat – USD, EUR, GBP, CAD, AUD
Founded in 2013 in Israel, Coinmama is one of the oldest crypto exchanges in the business. With its current headquarters in Dublin, Ireland, this centralized cryptocurrency exchange allows its users to quickly and securely buy and sell cryptocurrencies.
Coinmama is a popular platform used by 1.5 million people in more than 150 countries (except for 11 states in the United States). The company is registered with The Financial Crimes Enforcement Network (FinCEN) in the United States and ensures that the coins purchased through their platform are directly transferred to the user’s non-custodial wallet, rather than being kept in Coinmama’s own wallets.
⚡️ Deposit fees: 0 – 5 % ⚡️ Withdrawal fees: None ⚡️ Trading fees: 2.9 – 3.9 % ⚡️ Payment Methods: Bank Transfer (SEPA), SWIFT, Fedwire, Bank cards, Open Banking, Google Pay, Apple Pay, Skrill ⚡️ Supported fiat: USD, EUR, GBP, CAD, AUD
Available almost worldwide Mobile App (Android and iOS) Good for Beginners Good Support Various payment methods
A small selection of available cryptocurrencies Not the lowest fees Can’t do anything on the platform other than purchases and sells of coins
👛 Ease of Use – Easy 👛 Fees – High 👛 Verification – 1 Day 👛 Reputation – Trusted 👛 Supported fiat – USD, EUR, GBP, RUB
Founded in 2013 in London, UK, and with over 4 million users, Cex.io is among the oldest cryptocurrency exchange platforms on the market. On Cex.io, you can buy, sell, trade, and store over 100 cryptocurrencies.
This centralized exchange supports fiat to crypto purchases, margin trading, spot trading, staking, lending, leverage, and savings. It has more than 100 cryptocurrencies available for trade and over 220 trading pairs. Today, Cex.io is available in more than 180 countries around the globe (including the U.S.). Cex.io applies AML and KYC policies, and it is registered with The Financial Crimes Enforcement Network (FinCEN).
It is never a good idea to keep your coins on an exchange as that exposes you to numerous risks (exchange hacks, fund freezes by the exchange or some government regulatory body, etc). That is why you should use one of the wallets we list below to store your digital assets.
But, which bitcoin wallet is available in this country?
The safest option is a hardware wallet like Nano X but ZenGo is also a good choice, especially for newcomers.
👛 Ease of Use – Easy 👛 Fees – Average 👛 Verification – 2-3 Days 👛 Reputation – Trusted 👛 Supported fiat – USD, EUR, GBP, JPY, CAD
Established in 2011, Kraken has carved a niche for itself as a trusted and reliable crypto exchange. It boasts support for an impressive roster of over 220 digital assets, encompassing major cryptocurrencies like Bitcoin, Ethereum, Cardano, and many others. Security has always been a cornerstone for Kraken, making it a go-to choice for many.
Its global footprint is vast, covering a majority of countries with only a few exceptions such as Iran and Washington state. On the convenience front, Kraken doesn’t disappoint. Users have a wide array of payment options at their disposal, and the platform is also flexible when it comes to fiat currency transactions. Additionally, seasoned traders can leverage advanced features to optimize their trading strategies.
⚡️ Deposit fees: EUR SEPA Deposit (Free) – EEA countries only USD Bank Wire Deposit ($5 USD) – US onlyEUR Bank Wire Deposit (€10) – outside the US only USD Bank Wire Deposit ($10 USD) – outside US onlyJPY Bank deposit (Free, ¥5,000 deposit minimum) – Japan-only USD, Wire Deposit (Free) ⚡️ Withdrawal fees: Cryptocurrency: Fees vary, SEPA Withdrawal (€0.09) – EEA countries only USD Bank Wire Withdrawal ($5 USD) – US only USD Bank Wire Withdrawal ($60 USD) – outside US onlyEUR Bank Wire Withdrawal (€60) – outside US onlyJPY Bank withdrawal (¥20) – Japan onlyCAD EFT Withdrawal ($10 CAD) ⚡️ Trading fees: Maker: 0.16%Taker: 0.28% ⚡️ Payment Methods: Fedwire, Bank Transfer (SEPA), SWIFT, Wire Transfer, Etana Custody, Silvergate Exchange Network (SEN), FPS, CHAPS, and BACS, PayID, Osko ⚡️ Supported fiat: USD, EUR, GBP, JPY, CAD
Available almost worldwide High security Over 90 cryptocurrencies Various payment methods
Fees slightly above the industry average No tax support
👛 Ease of Use – Easy 👛 Fees – Low 👛 Verification – 1 Day 👛 Reputation – Trusted 👛 Supported fiat – USD, EUR, GBP, JPY, and CNH
Founded in 2012, this exchange from the British Virgin Islands represents one of the oldest crypto exchanges in the community. The large ecosystem of crypto products and trading options (spot trading, margin trading, derivatives, paper trading, and more) makes Bitfinex one of the most popular exchange platforms by volume.
The extremely low trading fees are another reason why so many crypto traders opt for this platform. Most trades cost around 0.20 %, but it is based on a Taker-Maker concept. The maker fee is 0.10 %, while the taker fee is 0.20 %. These fees apply to fiat trades, crypto, and stablecoins.
⚡️ Deposit fees: 0.1 % ⚡️ Withdrawal fees: Free ⚡️ Trading fees: 0 – 0.2 % ⚡️ Service fees: 0.1 % ⚡️ Payment Methods: Debit/Credit Cards, ACH Transfer, Wire Transfer ⚡️ Supported fiat: USD, EUR, GBP, JPY, and CNH
Withdrawal, deposit, and trading fees are very low Supports margin trading, spot trading, derivatives, and other advanced order types The mobile app works great Wide range of supported cryptocurrencies
Second largest hack in history Not available for US citizens
Frequently asked questions about buying Bitcoin in Sri Lanka
Can I buy Bitcoin for 1000 rupees❓
You can buy a fraction of a Bitcoin. For instance, you can buy Bitcoin for Rs 100 or Rs 1,000.
Is buying cryptocurrency legal in Sri Lanka❓
There is no specific law on cryptocurrency in Sri Lanka.
Does Localbitcoin work in Sri Lanka❓
Yes, LocalBitcoins is available in Sri Lanka.
What is the minimum Bitcoin I can buy❓
The minimum order size on the Bitcoin Market is 0.00001 BTC.
Is PayPal available in Sri Lanka❓
The world’s most popular payment gateway service PayPal which facilitates e-commerce across borders will be opened up for Sri Lankans very soon, Sri Lanka’s state-run ICT agency Chief said.
Is cryptocurrency safe❓
Investing in crypto assets is risky but also potentially extremely profitable. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrency.
Is Binance available in Sri Lanka❓
In 2020, Binance added support for the LKR on its peer-to-peer trading platform. According to Dilip Ishara, blockchain community manager and Binance Angel, Sri Lanka’s local Binance community have around 4,000 members.
How do beginners buy bitcoins❓
You must add a bank account, debit card, or credit card to make your first bitcoin purchase on most exchanges. Adding a bank account is recommended for buying large amounts of bitcoin as the transfer fees tend to be lower. Credit and debit cards are only recommended for smaller purchases as they carry higher fees.
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As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge.
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