Resolutions enacted by the National Banking and Securities Commission of Honduras (CNBS) and the Honduras Central Bank prohibit financial institutions from carrying out cryptocurrency-related activities.
The CNBS stated that the Honduran central bank cannot guarantee cryptocurrency transactions due to the sector’s absence of regulation.
Legislative, operational, and fraudulent concerns are among the hazards outlined in the resolution in relation to cryptocurrencies and blockchain-based financial services.
It also emphasizes the potential loss of payment acceptability for cryptocurrencies due to their lack of legal recognition.
In addition, the resolution raises apprehensions regarding the unregulated characteristics of crypto assets, a circumstance that may facilitate their exploitation for fraudulent activities, money laundering, and terrorism financing.
Consequently, institutions subject to the oversight of the CNBS are prohibited from engaging in activities such as investment, operation, maintenance, or intermediation involving cryptocurrencies.
“Prohibit National Banking and Securities Commission-supervised institutions from operating, investing, maintaining, or intermediating with cryptocurrencies, crypto assets, tokens, or any other comparable virtual asset.”
In addition, it is illegal for supervised institutions to possess derivative instruments comprised of crypto assets.
Additionally, the resolution stresses the importance of integrating risk information regarding crypto assets into financial education programs.
It is crucial to acknowledge that the practical implementation of cryptocurrency exchanges in Honduras remains unaffected by the resolution.
As an entity operating under the presidential administration of Honduras, the CNBS unanimously endorsed the resolution on February 15, 2024. Its implementation commences that day.
In March 2022, Honduras issued a warning regarding the use of cryptocurrencies in response to rumors that the country might adopt Bitcoin (BTC) as legal tender, in a manner similar to El Salvador.
At that juncture, the central bank of Honduras had indicated curiosity regarding the feasibility of developing a central bank digital currency.
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