Honduras Bans Banks from Cryptocurrency Transactions

The National Banking and Securities Commission of Honduras (CNBS) has issued a resolution prohibiting financial institutions from holding and conducting operations with digital assets.

The decision stems from the lack of regulation in the country’s crypto industry. According to the document, the local central bank cannot ensure the security of transactions involving digital assets.

“Prohibit institutions under CNBS control from holding, investing in, and otherwise interacting with cryptocurrencies, crypto assets, virtual currencies, tokens, or other similar virtual assets,” the resolution states.

The agency also noted that blockchain-related financial services are used for fraud, money laundering, and terrorism financing, and are accompanied by high operational and legal risks.

CNBS representatives believe that cryptocurrency users may face the cessation of asset acceptance and issuance at any moment, as citizens are not legally required to recognize them as a means of payment.

In 2022, the municipality of Santa Lucia in Honduras integrated payments in the first cryptocurrency. Authorities believe this will attract tourists from around the world.

In January 2024, the economic zone of Próspera in Honduras officially recognized Bitcoin as a unit of account.