{"id":89820,"date":"2024-02-17T22:11:30","date_gmt":"2024-02-18T03:11:30","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=89820"},"modified":"2024-02-17T22:11:32","modified_gmt":"2024-02-18T03:11:32","slug":"honduras-tightens-crypto-regulations-prohibits-bank-transactions-and-holdings","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89820","title":{"rendered":"Honduras Tightens Crypto Regulations, Prohibits Bank Transactions and Holdings"},"content":{"rendered":"
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The National Banking and Securities Commission of Honduras (CNBS) has passed a resolution prohibiting the country\u2019s financial institutions from engaging in cryptocurrency-related activities.<\/p>\n

The CNBS stated<\/span> that crypto transactions cannot be guaranteed by the Honduran central bank due to the lack of regulation in the sector.<\/p>\n

The resolution highlights the risks associated with cryptocurrencies and blockchain-based financial services, including potential fraud, operational issues, and legal risks.<\/p>\n

It also emphasizes the possibility of cryptocurrencies losing acceptance as a means of payment since they are not legally recognized.<\/p>\n

Honduras Voices Concern About Unregulated Nature of Crypto<\/h2>\n

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The resolution further expresses concerns about the unregulated nature of crypto assets, which can be exploited for fraudulent schemes, money laundering, and financing terrorism.<\/p>\n

As a result, the CNBS has mandated that institutions under its supervision refrain from maintaining, investing, intermediating, or operating with cryptocurrencies.<\/p>\n

\u201cProhibit institutions supervised by the National Banking and Securities Commission from maintaining, investing, intermediating or operating with cryptocurrencies, crypto assets, virtual currencies, tokens or any other similar virtual asset.\u201d<\/p>\n

Additionally, supervised institutions are prohibited from holding derivative instruments based on crypto assets.<\/p>\n

The resolution also emphasizes the need to incorporate information about the risks associated with crypto assets into financial education programs.<\/p>\n

It is important to note that the resolution does not affect the operations of crypto exchanges in Honduras, which continue to operate without restrictions.<\/p>\n

The CNBS, as part of the Honduran presidential administration, unanimously approved the resolution, which takes immediate effect as of its release on February 15, 2024.<\/p>\n

Honduras had previously issued a warning about the use of cryptocurrencies in March 2022, following reports that the country might adopt Bitcoin (BTC) as legal tender, similar to El Salvador.<\/p>\n

The Honduran central bank had expressed interest in studying the possibility of issuing a central bank digital currency at that time.<\/p>\n

Honduras Sees Growing Bitcoin Adoption<\/h2>\n

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Despite the regulatory stance, Honduras has seen some adoption of Bitcoin<\/span>\u00a0within its borders.\u00a0<\/span><\/p>\n

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I have now been in Honduras for about one month.<\/p>\n

I am here attending the two months long popup city #Vitalia<\/a>, an event at the frontier of technology and policy, where 200+ attendees with backgrounds in biotech, crypto, AI and charter cities live, work, and learn together.<\/p>\n

Some\u2026 pic.twitter.com\/aYNfjB5lME<\/a><\/p>\n

\u2014 Petar \u010cekerevac (@pcekerevac) February 10, 2024<\/a><\/p>\n<\/blockquote>\n

One of the most notable developments is in Pr\u00f3spera, a special economic zone on Roat\u00e1n Island, which has taken a pioneering step<\/span>\u00a0by officially recognizing Bitcoin as a unit of account, allowing it to be used to measure the market value of goods and services.\u00a0<\/span><\/p>\n

Spearheaded by Jorge Colindres, the acting manager and tax commissioner of Pr\u00f3spera, the initiative aims to expand financial and monetary freedom for individuals and businesses operating within the zone.<\/p>\n

Despite technological and regulatory challenges that currently prevent the implementation of a \u201cFinal BTC Tax Payment Procedure,\u201d the zone has outlined a process for entities to report tax liabilities in Bitcoin, although they are temporarily reported in U.S. dollars or the Honduran lempira.<\/p>\n

Moreover, the broader Honduran community is embracing Bitcoin through initiatives like the \u2018Bitcoin Valley\u2019 in the town of Santa Lucia.<\/p>\n

This project aims to transform Honduras into a regional hub for crypto investors by encouraging a wide range of businesses to accept Bitcoin as payment.<\/p>\n

Bitcoin Valley seeks to capitalize on the growing interest in crypto assets, following in the footsteps of neighboring El Salvador, which has seen a significant increase in tourism and economic activity following its adoption of Bitcoin as legal tender.<\/p>\n<\/p><\/div>\n