CBSI Gives Warning to Citizens Against the Use of Cryptocurrencies by Calling Them Unregulated

The Central Bank of Solomon Islands or CBSI has issued a warning to the native citizens against the virtual or digital currencies like Bitcoin, Ethereum, Ripple, and others. The reputed authority stated that these cryptocurrencies are not issued or controlled by the Central Bank.

As per the official statement given by CBSI,

These cryptocurrencies do not have any legal tender status to be accepted as a currency in Solomon Islands. CBSI hereby warns the public that investment in such digital currencies is considered very risky and speculative in nature.

The bank remarked that the people who trade in cryptocurrencies do so with their own will and at their own risk. It further stated that “there is no guarantee that cryptocurrencies will be accepted as a medium of exchange, or will hold their value.”

The Central Bank affirmed that it has no plans of lending support to unregulated virtual assets and, hence, warned the general public from investing their capital in the crypto niche. Cryptocurrencies are digital assets and are not similar to the fiat currency or the government-issued coins or notes. It is regarded to be the new-age currency which employs the mechanics of distributed ledger technology while ensuring reliability, transparency, and trust to the users.

Since its launch in the marketspace, cryptocurrencies have always been the center of focus for monetary regulators worldwide. Despite this critical scrutiny, virtual currencies lack any specific legal status in most of the countries. There is no proper recognition for the trading activities related to the digital currencies. Though the current regulatory ecosystem is quite stringent towards the virtual assets, there still remains a lack of regulatory control and measures over this new-age arena. The warning issued by CBSI is nothing new for the crypto domain as similar warnings and announcements have been made by different regulatory authorities from different parts of the world in the past also.