Honduras Bans State Financial Systems From Crypto Trading

Honduras prohibits crypto trading. (photo; dock. pexels)

JAKARTA - CNBS Honduras regulators have banned the country's financial system in the Central American country from attempts to trade in cryptio currencies and similar virtual assets. This was conveyed in a resolution, referring to the risk of fraud and money laundering.

The National Banking and Securities Commission of Honduras, stated that the resolution, which was brought in from Monday 12 February but announced on Friday, February 16, was "with immediate effect." The resolution prohibits agencies under its supervision from "protecting, investing, mediating, or trading with cryptocurrencies, crypto-assets, virtual currencies, tokens, or similar virtual assets that are not issued or authorized by the central bank."

Honduras law currently does not regulate crypto assets, although platforms that trade in them operate in the country. The watchdog noted that because many of these platforms are domiciled in various jurisdictions, Honduras law cannot control them and they risk "allowing themselves to commit fraud, money laundering and terrorist financing."

Honduras central bank has warned that it is not responsible for and cannot guarantee such transactions. In March 2022, the central bank said it was studying technical and legal feasibility to issue their own digital currency, which would be regulated and recognized as legal tender. However, there has been no announcement of a decision on this matter.

Honduras Prospera, a model resort town in the Caribbean operating as an administrative, fiscal, and budget autonomy zone (ZEDE), announced in April 2022 that it adopted bitcoin as a legal tender within their territorial boundaries. It's unclear directly how this new policy will affect them.