Honduras' financial system has put the brakes on cryptocurrencies, with the National Banking and Securities Commission (CNBS) banning institutions under its supervision from handling digital assets.
CNBS said financial institutions in the country will not be allowed to “maintain, invest in, intermediate, or operate cryptocurrencies, cryptoassets, virtual currencies, tokens, or other similar virtual assets.”
The CNBS resolution points out the unregulated nature of virtual currencies and the potential for fraud, money laundering, and terrorist financing, and states that banks, investment firms, and other financial institutions must It effectively prohibits engaging in any activity related to currency. .
Honduras has several crypto-friendly initiatives underway, including Bitcoin Valley and the Prospera Special Economic Zone, where Bitcoin functions as legal tender. However, Honduras' central bank has previously warned against the use of cryptocurrencies and is considering issuing its own digital currency. Cryptocurrency exchanges continue to operate freely in Honduras, but mainstream financial institutions are currently prohibited from entering the digital asset space.
