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Honduras’ financial regulator has restricted local financial institutions from trading or holding cryptocurrencies over fraud and money laundering concerns.
The National Banking and Securities Commission (CNBS) issued the ban this week, mentioning the unregulated nature of cryptocurrencies. The CNBS said crypto assets could expose users to operational, legal, and fraud risks since there are no guarantees for crypto transactions.
The ban prevents Honduran banks, investment firms, and CNBS-supervised institutions from maintaining, investing in, or operating with cryptocurrencies or related assets. They also cannot hold derivatives based on cryptocurrencies.
The CNBS said cryptocurrencies could be used for illegal activities like fraud, money laundering, and terrorism financing due to the lack of regulation. It has required warnings about crypto risks to be included in financial education programs.
Crypto trading platforms still operate in Honduras despite the ban. In 2022, the country opened Bitcoin Valley to promote crypto tourism and the Roatan island hub Prospera adopted Bitcoin as a separate legal tender. It remains unclear how the CNBS ban will impact those crypto-friendly zones.
Also Read: Honduras Zone Recognizes Bitcoin as Official Unit of Account
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