Honduran securities regulator bans banks from investing and trading in cryptocurrency
The Honduran National Commission of Banks and Securities (CNBS) has ordered institutions not to interact with cryptocurrencies for financial services because unregulated crypto assets could be used for illegal activities.
Honduras is a Central American country where, like most Central American countries, cryptocurrencies are completely unregulated. Cryptocurrencies are only regulated in Brazil, Argentina, and Mexico. In 2018, the Honduran central government posted a notice to all individuals and companies handling cryptocurrencies, stating that cryptocurrencies are unregulated and not backed by the central bank.
On February 15, 2024, an order was issued by the CNBS to ban all banks that handle cryptocurrencies, including investment transactions, as part of payment services.
Read the statement:
“Prohibits entities subject to the supervision of the National Banking and Securities Commission from maintaining, investing in, brokering, or operating any cryptocurrency, cryptocurrency asset, virtual currency, token, or other similar virtual asset.”
The central bank said that because cryptocurrencies are not fully regulated, they can be exploited by malicious actors for illegal activities or fraud.
In particular, CNBS is part of the Honduran presidential administration, and this order was unanimously approved and took effect immediately.
This central bank order is not a ban on cryptocurrencies. This only applies to local banks that handle cryptocurrencies.
In early March 2022, some media reported that Honduras, like El Salvador, was planning to adopt Bitcoin as its legal tender. In response to these reports, the Central Bank of Honduras officially stated, “There are no such plans, but we are working to issue a central bank digital currency (CBDC).”
In the summer of 2022, Bitcoin Valley opened in the country to attract tourists. Here, people can pay with Bitcoin (BTC) for goods and services.
In just a few weeks, Bitcoin Valley has attracted significant attention not only among tourists but also among high-profile businesses.
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