Honduras regulator bans banks from conducting transactions with cryptocurrencies

The resolution went into effect immediately

19.02.2024 - 08:45

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2 min

What’s new? The National Banking and Securities Commission (CNBS) of Honduras has issued a resolution that prohibits local banks from holding digital assets and conducting transactions with them. Regulatory officials said cryptocurrencies could be used for fraud and money laundering. The February 12 resolution had “immediate effect.”

CNBS resolution

What else is known? The resolution prohibits institutions supervised by the CNBS to “maintain, invest, intermediate or trade in cryptocurrencies, crypto assets, virtual currencies, tokens, or any similar virtual assets not issued or authorized by the central bank.”

Currently, Honduran law does not regulate digital assets, although platforms trading them operate in the country. The authority said that because many of these companies are registered in multiple jurisdictions, local law cannot control them and they risk “fraud, money laundering and terrorist financing.”

The Central Bank of Honduras has warned that it is not responsible for and cannot vouch for any transaction involving cryptocurrencies.

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In August 2023, Binance launched the Send Cash service, which allows exchange users from nine Latin American countries, including Honduras, to transfer cryptocurrency via Binance Pay to bank accounts.

In January, Honduras’ special economic zone Próspera, located on the island of Roatán, officially recognized bitcoin as a unit of account. At the same time, the status of legal tender in the territory of Próspera was assigned to BTC back in April 2022.

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