The National Banking and Securities Commission of Honduras (CNBS) has prohibited local financial entities from offering cryptocurrency-related products and services.
Citing crypto’s lack of regulation and financial guarantees from the central bank, the resolution bars institutions under CNBS supervision from maintaining, investing, intermediating, or operating with cryptocurrencies or crypto-based derivatives.
The ruling states that the unregulated nature of digital assets carries risks of fraud, money laundering, terrorist financing, and other illegal activities. It also notes cryptocurrencies may lose transactional utility if not legally recognized as payment methods.
Additionally, the CNBS stressed the need to communicate crypto risks through consumer financial education programs.
Crypto exchanges continue operating freely within Honduras despite the restrictions on financial institutions.
This hardline stance from Honduras contrasts with the pioneering adoption of itcoin">Bitcoin in neighboring El Salvador. It also counters emerging local trends of itcoin">Bitcoin integration.
The special economic Próspera zone on Roatán island officially recognizes itcoin">Bitcoin as a unit of account for tax reporting purposes. Though not enabled as payment yet, this symbolizes openness to crypto’s financial promise.
Other grassroots initiatives like the “itcoin">Bitcoin Valley” project in Santa Lucia aim to make Honduras a hub for crypto investment and tourism like El Salvador. Early movers accept itcoin">Bitcoin payments to draw ideologically aligned businesses and visitors.
For now, these piecemeal adoption attempts contend with the central bank-backed restrictions enacted by the CNBS resolution. But if crypto continues permeating Honduran finance and commerce without incident, the regulatory perception may gradually soften over time.
